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Old 04-17-2008, 03:58 PM
scfr scfr is offline
$ Saving College Senior
 
Join Date: Sep 2006
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I have read that the home office deduction is no longer the red flag for the IRS that it used to be.

When we owned a home, my husband had a room that he used exclusively as the office for his business, so we took the deduction.

When we sold our house (at a price higher than what we paid for it), we did have to pay a capital gains tax on the percentage of the home that was the home office, so be aware that if you decide to take the home office deduction you will want to keep good records of your home's cost basis (the way we all used to back before the capital gains tax on homes was essentially "eliminated").
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