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first time homeowner credit- and claiming a business room?

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nullity
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first time homeowner credit- and claiming a business room?  Reply with quote  

I bought my first house last year and am considering claiming a room of it (and corresponding portion of mortgage) for a home business. Does anyone know if this would violate the terms of the tax credit and force repayment? I've looked all over but all I can find is that the house must be your primary residence for 3 years, which it is/will be, but i don't want to chance it on an assumption. Thanks!
Post Mon Sep 19, 2011 10:48 pm
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Offshore-Wealth.com
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Re: first time homeowner credit- and claiming a business roo  Reply with quote  

quote:
Originally posted by nullity
I bought my first house last year and am considering claiming a room of it (and corresponding portion of mortgage) for a home business. Does anyone know if this would violate the terms of the tax credit and force repayment? I've looked all over but all I can find is that the house must be your primary residence for 3 years, which it is/will be, but i don't want to chance it on an assumption. Thanks!


No, one has nothing to do with the other, so no problem.

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Post Tue Sep 20, 2011 1:52 am
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coaster
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I agree, no problem with the tax credit. But be sure you're aware of what the IRS considers deductible, and how you have to document it, before you do it. Home business deductions are one of the biggest red audit flags they have. Be sure you have all your ducks in a row. More info on the IRS web site....

~Tim~
Post Tue Sep 20, 2011 3:38 am
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RichS
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Definitely go to irs.gov and search for the info on home office deductions. Not only will this keep you out of trouble but it will show you deductions you didn't even think about. Most people cheat themselves out of deductions because they were not aware of them and their tax preparer didn't ask. Very Happy
Post Tue Sep 20, 2011 9:08 pm
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You need to dedicate the room as an office and take the square footage of the room vs. the square footage of the house. I'd really recommend talking to an accountant or a professional tax preparer.

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Post Fri Sep 23, 2011 6:28 pm
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