Hi -
Thank you so much for the thorough reply! When I go to enter my home office percentage, TurboTax has a couple scenarios listed. One of them is “what if rent out space in my house?” The answer prompts me to subtract out any space being rented from the total square footage of the home in order to calculate the amount of my personal space being used for business (music) purposes. I then subtracted out the amounts of mortgage interest, property tax, etc. allocated to my rental space and calculated the amount allocated to my home office based on the new number (again, following the prompts of the program). This all seemed to make sense to me, but I became confused when thinking through depreciation. Turbo Tax automatically calculated depreciation for my home office using that same percentage, but the amount of my home available for personal use will change if my renter moves out. Did I misunderstand the program’s guidance?
