My husband does App development and sell them at iOS app store at his spare time. But this is mainly for fun and the amount of income he got is very minimal (<$1000) each year.
But he got a business licence and use our home address for the licence since he thinks this might be necessary to report tax for the income he earned from that.
My first question is: Do you have to own a business license to report income like this?
My second and more important question is: Will business license automatically cause depreciation recapture for my home?
We did NOT claim use our home as home office in our tax return and did NOT put any utility, property tax, mortgage interest as deductions to offset his App income. In this case, will we got trouble for depreciation recapture if we decide to sell our home in the future?
thanks
