When you sell your principal residence , you can exclude

from income up to $250,000 of gain and $500,000 on

a joint return. Ownership and use tests must be met .

But if you've been taking a home office deduction

because you used part of your home for business, the

IRS will consider part of the house sale as a sale

of business property. That means you'll have to

pay taxes on the portion of the gain which is allocated

to the part of the house you used for the business.

You can avoid this problem if no part of your house

qualifies for a home-ofiice deduction during the year

the sale is made. If you make sure that it is obvoius

that your home office space is used for non-business purposes,

it won't qualify for the home-office deduction.

The sale will not be treated as a partial sale of business

property and the sales proceeds will qualify for exclusion of the gain

IRS Representation

We provide elctronic account resolution with the IRS for:

Penalty Information/Computation

Mixed Entity Period

Misapplied payment/Credit Transfer

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