To figure the depreciation deduction, you must first figure the part of the cost of your home that can be depreciated (depreciable basis). The depreciable basis is figured by multiplying the percentage of your home used for business by the smaller of the following.
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The adjusted basis of your home (excluding land) on the date you began using your home for business.
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The fair market value of your home (excluding land) on the date you began using your home for business.
Publication 587 Business Use of Your Home
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