Cost of Gifted Home in Home Office Section

[Tiger117]

My husband & I were gifted our mobile home in 2013 which was completely paid off.  I began declaring one room as my home office in 2023.  Per our property tax assessment, the value of the home is assessed at $43,472.  Is this the amount I declare as the cost of the entire home (this does not include land because we pay rent for our space).

[KrisD15]

Yes, however there are two methods to taking the Home Office deduction. 

Actual and the Simplified method.

The simplified method does not calculate the deduction on the value of the home, it is a set rate per square foot.

Be aware that if you use actual, depreciation recapture will need to be addressed when you sell.