Rental Property/ Home Office Depreciation

Forum|Forum|6 years ago
February 9, 2020
9 replies
57 views

I sold my property in 2019, a property that I had a home office in, as well as rented out a bedroom . This activity was in 2016-2018 for the most part.

The TurboTax question I am stumped on is - " Since you used your home for business purposes or rented it out, you must reduce the home's cost basis by the total of any depreciation deductions that you took over the years.

Depreciation Taken on this home ______

Depreciation Taken for AMT ________

ThomasM125

Level 15

You are required to depreciate business property. So if you rented your house or used a home office, you must calculate the depreciation applicable to it and report that when you enter the house sale information in TurboTax.

You can manually calculate the deprecation if it is not in the program. Just take the cost of the house, excluding the land value, divide it by 27.5. That is the deprecation amount for one year. Multiply that by the number of years you used it for business. Finally, multiply the depreciation amount you come up with by the portion of the house you used for business (the business use percentage) and that will be your depreciation.

The AMT depreciation would normally be the same as the regular depreciation in the case of real estate.

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mustangbossAuthor

Level 2

I located it. The answer is $3,697 for current Depreciation. I found this in TurboTax 2016. I then take it by how many years it was used for business, I am going with 4, but need help finding or determining business use percentage.

Thanks in advance.