HopeS
Expert Alumni

Get your taxes done using TurboTax

No, the depreciation does not start when the home is purchased. You will start depreciating the office home on the date you start using that home office.

 

Be aware that you can claim the same home office space if you have more than one Schedule C business, but you can't deduct the office expenses multiple times. You'll have to split this expense between the 2  businesses so that you’re only claiming the total square foot space for each Sch C in your return. Whatever method you use to divide the expenses, please keep a proper record in case of an audit. Also, the method used to do the calculation each year should be consistent. For example, if you are allocating the home expenses based on revenue earned by each Sch C in  2022, then you should use the same method in 2023.

 

It is not clear what you are asking in your last question. If you are asking when the depreciation ends for the home office, this will end whenever you stop using the home office. 

With regard to improvements made in 2022 and future years, you will add these improvements to the depreciation worksheet by showing the date and cost of the improvements. This new improvement will be depreciated over 39 years starting with the date they were added.  TurboTax will allocate a portion of the depreciation to each home office based on the square footage of the home office. 

 

Please refer to the link provided by @AnnetteB6 as well.

 

 

@iOne 

 

 

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