Using Home Office Deduction Without Depreciation

[KraziMM]

We are real estate agents who work from home year-round. How can we deduct home office expenses for the room and utilities without depreciating the home office? What are the disadvantages of depreciating the home office? Additionally, if the home office property is held in a trust, what are the advantages and disadvantages for the beneficiaries? Thank you in advance for your response.

[RSUMan]

The IRS requires you to take into account the depreciation allowed or allowable when you sell the home.

So if you are not taking the depreciation expense each year, you nevertheless would have to decrease the basis of the home sold by the amount of the depreciation that was allowable over the years.

There is not necessarily a disadvantage to depreciating your home office, it may just cause the basis of your home to be lower when the house is sold and the sale may trigger depreciation recapture.