home office - selling home - capital gain taxes

[angelav123]

What is the name of your state? calif.
I want to sell my home of 7 years, but I've operated a small business from it and have taken the home office deduction on my income taxes. The office portion is a detached building (garage of sorts) from my home & attached garage, all on the same 1/4 acre city lot. What are my capital gain taxes, if any due to the depreciation, etc taken on the home office deduction. I know I can get a $250,000 ($500,00 if filling jointly) exclusion, but will the fact that i've run a home business interfere with that exclusion? please advise. thank you.

 

[Daniel M.]

You might want to post your question to the tax forum,
but here are a couple of links. Looks like your depreciation amounts will be taxed. I would have a tax pro do the return.


http://www.gwcartercpa.com/home-business_tax_guide.htm

http://www.poteshman.com/taxart12.htm

 

[HomeGuru]

You might want to post your question to the tax forum,


**A: correct........

 

[PghREA]

Yes, there will be capital gains tax due on the business portion of your home. How much, that depends. You need to take your prior tax returns to your CPA and have him do the calculations. The amount of tax you will have to pay depends on the information you submitted on those returns (and the amount you receive on the sale of the home less the basis).

 

[HomeGuru]

Post tax issues on the proper tax law forum.