Discussion:How to handle home office sale at a loss
From TaxAlmanac, A Free Online Resource
Note: You are using this website at your own risk, subject to our Disclaimer and Website Use and Contribution Terms.
From TaxAlmanac
Discussion Forum Index --> Advanced Tax Questions --> How to handle home office sale at a loss
Discussion Forum Index --> Tax Questions --> How to handle home office sale at a loss
Cestrobeck (talk|edits) said: | 15 May 2008 |
| Customer purchased a home for $520K and built out a home office in the basement for $35K. Sold the home at a loss 2 yrs later ($495K). What is the correct way, and how much, to handle the business loss? I capitalized the $35k as home office addition, but can't decide how to allocate the loss on the home to business use portion. Should I just use the home office ratio to the loss as a whole and force the sale of capitalized asset to equal that calculated amount? Thanks. | |
Seaside CPA (talk|edits) said: | 15 May 2008 |
| I wouldn't think you would be able to allocate any of the loss to the business use portion, just as you would not allocate any gain for the business use portion (other than for depreciation recapture). This is just my thought without researching. Any other opinions? | |
RoyDaleOne (talk|edits) said: | 15 May 2008 |
| http://www.irs.gov/pub/irs-pdf/p523.pdf
See the worksheets about this situation. | |
To join in on this discussion, you must first
log in.
