sale of home with home office

[wtpublish]

I sold my home last year for a $10,000 profit. For the 18 years I owned it, I took a home office depreciation of $818/year.  Even with adding that amount to my profit, I'm still way under the $250,000 gain that's not taxed. But TurboTax tells me I have a taxable gain of $13K+. I'm confused and don't understand why I owe tax on the sale.  What am I doing wrong?

[ThomasM125]

You will pay tax on the depreciation allocable to the home office. That is not exempt since you took a deduction for that over the years. So if you sell the house at a gain, you have to pay tax on that portion as it didn't really depreciate if you had a gain on it's sale.

[wtpublish]

Thanks. Not what I wanted to hear but good to know before filing.