Do you claim the home-office deduction?
Would you like to avoid taxes when you sell your principal home that contains that office?
You can! Tax knowledge is powerful stuff!
First, say “thank you” to the IRS for creating an easy-to-follow procedure for combining the tax-favored Section 1031 tax-deferred exchange and the Section 121 home-sale exclusion rules so that you can
avoid taxes on the sale of the personal part of your home,
avoid taxes on the sale of the office part of your home,
avoid taxes on the sale of the rental part of your home, and
defer taxes on depreciation recapture caused by the office or rental part of your home.
Think of it: zero taxes this year when you use the right combination of Sections 121 and 1031. You can use this combination to defer and avoid recapture and capital gains taxes on a principal residence
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