Estimated tax tip savings. Deducting the loss on the business portion of your home can give you thousands or even tens of thousands of dollars of tax relief.
Tax law is great for homeowners who sell their home at a profit. But how does tax law treat you if you sell your home at a loss?
Most homeowners get no tax benefit in this situation.
But you can get a benefit—and you likely will if you’re a regular reader of the Tax Reduction Letter, since you probably use part of your home as a home office or for some other profit-related activity.
And if you have not dedicated part of your home to a business purpose, there’s still time to do so.
So if you must sell your home at a loss, take the deduction that many people overlook by simply ... Log in to view full article.