Question

If I don’t claim depreciation as part of my home-office deduction:

Can my home office still qualify as a principal office?

Will the IRS attack me for the allowable depreciation?

Answer

Let’s start with a flaw in your question. Why would you choose not to claim depreciation?

First, it’s likely that the recapture tax (technically, the tax on unrecaptured Section 1250 gain) will be less than the tax benefits you receive. This means you are likely to lose money by not claiming the depreciation ... Log in to view full article.