Home Office Deduction?
I just moved and bought another house which I plan to occupy as my primary residence for at least 2 years.
I'm also in the process of starting a small home-based business, and I know I can depreciate the portion of the home which is used exclusively as office space, which generally amounts to 10-20% of the home's depreciable basis.
My accountant ran the numbers, and though the depreciation schedule varies from year to year, the depreciable benefit only amounts to about a $1,000 dollars a year.
A friend of mine (who owns several businesses) says that claiming a home office is one of the worst things I could do, and instead proposed that I should lease a corporate from my home for a cost I would normally have to pay for similar office space elsewhere (approximately $800.00/month, for a total of $9,600/year.
Granted, the $9,600/year is alot better than a $1,000/year, even more so since the recapture issue also disappears.
Are there any ramifications I'm missing in this scenario?
Thanks in advance.
Steve :-?
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