Edward Posted November 21, 2010 Report Share Posted November 21, 2010 Currently when you sell a residence in which the OIH deduction has been taken, the entire home (when sold) is treated as a residence for purposes of the home exclusion rules and only the gain from depreciation allowed or allowable after Mar 6, 1997 is taxable. Somewhere I thought I had read that a new change is coming where the sale will consist of 2 separate sales (both business and 121 exclusion) with the entire business percentage being subject to taxes? Can anyone provide a cite for this change? Thanks. Edward Quote Link to comment Share on other sites More sharing options...
TAXBILLY Posted November 22, 2010 Report Share Posted November 22, 2010 I believe the rules stated in Pub 587 are still true for 2010. taxbilly Quote Link to comment Share on other sites More sharing options...
OldJack Posted November 23, 2010 Report Share Posted November 23, 2010 Well... taxbilly does not want to answer the question except to refer you to the pub. Page 14 gives the answer that if the office is not a separate structure and is in the home you do not report a sale of a business asset (the office) on form 4797 and only exclude that portion of the gain as to depreciation from the gain reported and excluded as 121 on Schedule D. Quote Link to comment Share on other sites More sharing options...
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