Sale of home

[QuestionGuy101]

What is the name of your state? California

A taxpayer has a side job and he does the works at home. He has claimed one and only one year of 'business use of home' in 2001. Through the years he has been doing the works of his side job at his home. Now he sold his home in 2006. How to determine whether the whole property is qualified to be his home or not? It's important to make the determination because of the capital gain exclusion for the sale of home.

 

[LdiJ]

What is the name of your state? California

A taxpayer has a side job and he does the works at home. He has claimed one and only one year of 'business use of home' in 2001. Through the years he has been doing the works of his side job at his home. Now he sold his home in 2006. How to determine whether the whole property is qualified to be his home or not? It's important to make the determination because of the capital gain exclusion for the sale of home.

Did he claim any depreciation on the home in 2001? If not, its a non-issue. If he did claim depreciation then he would need to recapture that depreciation. That would be the only issue.

If he claimed depreciation, how much?