I don't know where to write this off...

[PetraP2009]

I purchased a little rural house two years ago and hired somebody to
fix it up. Total costs: 22690 Dollars. I paid all in cash. It is has 813 sqm.
Half of it I use for as my only place for business.

My sister is a bookkeeper in Europe and her advice makes me even more
confused about deduction as I am already are.

Here is my headache:

My sister says that I should not deduct my house for the business use
because that would cost me dearly if I one day want to sell the
house privately. She says, if I deduct the business part from home, I
have to sell the house then as business house and can't sell it as private
house and that would be a big financial loss for me. Is she right?

(She does not know American tax laws just European laws.)

She says I should deduct the house only as a private thing. I should
not deduct any business use.

But how should I do that? I have no mortgage. I paid the whole thing
in cash.

If I write it off privately WHERE on 4010 do I write it off?

As it would be not already complicated enough, I bought a barn behind
this house last year. I use it half for business and half to store private
stuff. The barn did cost me 1615 bucks.

WHERE and how much of my storage barn can I write off?

Please ease my headache and give me some advice.

Very thankfully,

Taxpayer with big headache!

 

[Silverplum]

Why did you erase -- and not answer -- the auto-fill question: What is the name of your state?

I purchased a little rural house two years ago and hired somebody to
fix it up. Total costs: 22690 Dollars. I paid all in cash. It is has 813 sqm.
Half of it I use for as my only place for business.

My sister is a bookkeeper in Europe and her advice makes me even more
confused about deduction as I am already are.

Here is my headache:

My sister says that I should not deduct my house for the business use
because that would cost me dearly if I one day want to sell the
house privately. She says, if I deduct the business part from home, I
have to sell the house then as business house and can't sell it as private
house and that would be a big financial loss for me. Is she right?

(She does not know American tax laws just European laws.)

She says I should deduct the house only as a private thing. I should
not deduct any business use.

But how should I do that? I have no mortgage. I paid the whole thing
in cash.

If I write it off privately WHERE on 4010 do I write it off?

As it would be not already complicated enough, I bought a barn behind
this house last year. I use it half for business and half to store private
stuff. The barn did cost me 1615 bucks.

WHERE and how much of my storage barn can I write off?

Please ease my headache and give me some advice.

Very thankfully,

Taxpayer with big headache!

 

[LdiJ]

I purchased a little rural house two years ago and hired somebody to
fix it up. Total costs: 22690 Dollars. I paid all in cash. It is has 813 sqm.
Half of it I use for as my only place for business.

My sister is a bookkeeper in Europe and her advice makes me even more
confused about deduction as I am already are.

Here is my headache:

My sister says that I should not deduct my house for the business use
because that would cost me dearly if I one day want to sell the
house privately. She says, if I deduct the business part from home, I
have to sell the house then as business house and can't sell it as private
house and that would be a big financial loss for me. Is she right?

(She does not know American tax laws just European laws.)

She says I should deduct the house only as a private thing. I should
not deduct any business use.

But how should I do that? I have no mortgage. I paid the whole thing
in cash.

If I write it off privately WHERE on 4010 do I write it off?

As it would be not already complicated enough, I bought a barn behind
this house last year. I use it half for business and half to store private
stuff. The barn did cost me 1615 bucks.

WHERE and how much of my storage barn can I write off?

Please ease my headache and give me some advice.

Very thankfully,

Taxpayer with big headache!

I agree with your sister if you live in the other half of the home. However, if the home is not your primary residence then I do not agree with your sister.

I discourage clients from claiming an "office in the home" because it doesn't give much of a tax benefit and depreciation has to be recaptured when and if the home is eventually sold. That causes someone to have to pay taxes on monies that would normally fall under the primary residence exclusion.

However, you really need to get a consult with a local tax professional who can discuss the situation and more fully explain your options.