>>Carefully look at IRS regulations about home office (a big flag for IRS audit).
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>There's another big "gotcha" with home offices that people don't know about until it's too late. Over the years, you get to write off depreciation and other expenses for a portion of the home. Say it's 1/10 of your house. That's great for the 20 years you are in business. However, when you sell the house you get nailed. Typically you don't have to pay taxes on profits made from your primary residence. However, if you deducted for a home office while you owned the house, you have to pay taxes on that portion of the sale .. meaning 1/10 in this case.
Nice thing to know! So if (in case I take this path) I count in the maintenance expenses but not the depreciation, then no red flags and no tax on sale?