FHA mortgage and tax questions - Posted by Tim_AZ

Posted by JHyre in Ohio on June 04, 1999 at 08:01:55:

The fact that the house was bought with an FHA loan does not impact your ability to take home-office or business-related deductions in any way. Your deductions are wholly dependant on the business conducted in the home. If you have specific questions about such deductions, feel free to post them. I or one of the several other tax types out there will probably answer 'em.

John Hyre

FHA mortgage and tax questions - Posted by Tim_AZ

Posted by Tim_AZ on June 04, 1999 at 24:36:35:

My wife and I bought our first home (our residence) last August with an FHA 3% down mortgage. She wants to start a home daycare, and we want to find out what the tax ramifications are for her doing this.

Does anyone know offhand whether we can deduct part of our home for a home office, or a business, if it was purchased with an FHA mortgage? I can read through my legal paperwork to find an answer, but I figured I would pick the brains of the knowledgeable people here. I guess I’m too lazy.

I would appreciate any feedback anyone might have. Thanks again.


Re: FHA mortgage and tax questions - Posted by Bud Branstetter

Posted by Bud Branstetter on June 04, 1999 at 11:07:39:

The upside is that you can expense many things that are associated with that business including the space and utilities of the house. Car expenses to buy the food if you feed them etc.

The down side is that out of the income you pay self employment taxes. You may also not want to expense the house the two years before you plan on moving. It does impact the way you calculate the basis on your house.