Tax Reduction Letter - Recapture Tax on Home Office

Article Date:

August 2008

Word Count:

660

Recapture Tax on Home Office

I have a new CPA who tells me that I have to account for depreciation on my home office whether or not I claim it, including paying the dreaded recapture tax on the deductions I did not claim. Is this true? (B.F.M., Cincinnati, Ohio)

Your CPA is talking about allowed and allowable depreciation. Allowed is what you claimed. Allowable is what you should have claimed.

Example. You claimed zero (allowed amount). The right amount is $1,000 (allowable ... Log in to view full article.

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