Cost of Entire Home

[DiAnneInDover]

Mom lives with me and she added me to deed last year for free.  Do I mark $0 for the Cost of Your Entire Home or do I put down value of home? (I'm doing the self-employment home office section.)

[GloriaL]

It depends. If you pay part or all of the home expenses (rent, mortgage, utilities, property taxes, etc.), you would be eligible to take a home office deduction.  However, if you do not pay for any of these expenses, you would not be able to take the home office deduction..

Keep in mind to be eligible to take a home office deduction, the area you are deducting for the home office must be used exclusively for your business..

For additional information, please refer to: IRS: Business Use of Home.

[DiAnneInDover]

Thank you for your answer. I do understand about the home office deductions. I do pay all the bills and deduct those expenses elsewhere.

What I'm trying to figure out is the Home Depreciation Expense where TurboTax asked about Cost of Entire Home. 

Since I didn't pay anything when Mom added my name to the deed, I don't know if I put $0 or the current value of the home.

[ColeenD3 · Accepted solution]

If by putting you on the deed, she in effect gave you 50% of the home, then you would need to put both 50% of the adjusted basis (cost plus improvements) and 50% of the Fair Market Value when asked for these amounts. 

It all depends what the two of you understand to be the end result of her adding you.