unallowed depreciation on home business from prior years

Forum|Forum|2 years ago
October 5, 2023
2 replies
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I have discontinued my home business the end of 2021. I have depreciated the home office over 12 years, however the last 3 years the depreciation expense was not allowed. It amounts to about $14,000 that isunallowable. This year I have converted that home office plus more space into a residential apartment. This is in my personal residence and I still live here. I want to convert to personal us as of January 1,2022. and then convert to Residential Rental Property. what do I do with the unallowable depreciation amount.

Not A Product Question

Best answer by AmeliesUncle

I don't think you really 'do' anything with it, at least not right now.

It remains suspended until you sell the home, in case you use it again for a home office. So just keep a permanent note to yourself of that amount, in case you need to know about it in the future. As a side note, that amount seems large for three years of depreciation of a home office (unless your office was a very large portion of your home, or your home is a multi-million dollar home), so you may want to double check that is the correct amount.