Welcome to the MDTAXES Message Board

The MDTAXES Network is an affiliation of CPAs that specialize in the tax planning and preparation for young health care professionals.  Please leave your questions or comments for our CPAs, who visit the message board regularly, or review the answers, suggestions and ideas posted in response to your colleagues' questions.

Please check out our other Message Boards available at www.FindAGoodCPA.com.

Please note: We are NOT affiliated with the Maryland Tax Department. If you're looking for information about Maryland income taxes, go to www.marylandtaxes.com.

Original MDTAXES Forum
Start a New Topic 
Author
Comment
Home office deduction for homeowners

What are the tax laws regarding the sale of a home if you have previously taken a home office deduction? Also, can the home office deduction be taken as an employee (no office space is provided at work), and does the space need to be a room unto itself, or can it be a part of a room? Thank you!

Zip Code: cp085@yahoo.com

Re: Home office deduction for homeowners

Under the current rules, if the home office is within your home, you don't need to pay taxes on the appreciation applicable to the portion of the home claimed as the home office. You do need to pay taxes on any depreciation you claimed over the years.

To claim the home office, a portion of your home needs to be used regularly and exclusively in connection with your profession. The rules don't state that the home office needs to be a separate room in your home.

If you're self-employed, you'll take the home office deduction directly against your income. If you're an employee, you claim the expenses along with your other unreimbursed professional expenses as a miscellaneous itemized deduction. Watch out for the AMT, however, since miscellaneous itemized deductions aren't allowable when calculating this tax.

Zip Code: cpa@mdtaxes.com