For some reason, the cost basis calculation for depreciating my home office has been based on the entire purchase price of my house, including the land, which I recently discovered isn’t eligible for depreciation. This has been the case since I bought the house in 2021, and now I’m looking to correct it.
I’ve gone into the “Forms” view and opened the worksheet for Form 8829 (specifically line 38 of the worksheet), but I’m unable to edit the original purchase price or land value fields. The purchase price is locked, and while the land value line is blank, it won’t let me add the land value from 2021 either.
Do I need to address this now, or can I leave it as is for the time being? I’m not planning to sell the house soon, but I want to make sure I’m not setting myself up for problems with depreciation recapture when I eventually do sell.
