Quote:
Originally Posted by Rain Man
I could be wrong, but I think there's a secret downside to doing that sort of thing. If you eventually sell the house, then it has negative tax implications since you've essentially depreciated that space. At least, that's how it works with my apartment. If I ever sell my house, I'll have a big tax bill because I've been depreciating it for two decades (or whatever my account does with it).
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They have a simplified square footage calculation that doesn’t depreciate the home anymore.
Back when you would get depreciation recapture. I don’t know of anyone that actually depreciated though.
EDIT: link.
https://www.irs.gov/businesses/small...fice-deduction