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CP-1
Returning Member

depreciation

I had an upholstery business that I closed end of 2020 (after retirement), located in a building that I own, also on my property. It includes an office, and space for maintenance work and storage. I also have rental properties that I actively run, and am using the same building for the same purpose of office, storage, and maintenance of the rental properties. The building was being depreciated along with some grounds maintenance equipment. How do I continue to take depreciation on the building and equipment, now that the upholstery business is closed; but of course I'm still using the same building to support an actively run (passive) rental property "business"?

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1 Reply
Carl
Level 15

depreciation

I assume you are reporting the rental income/expenses on SCH E. If so, a home office or any other type of claim for "space" is not allowed for residential rental real estate reported on SCH E.

 

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