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memjewels
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Depreciation Recapture on Home Office Which Began 2 Years After Initial Purchase

Hi,

 

In preparing for my 2024 tax return, I have a question regarding depreciation recapture.  I sold a home in 2024 which I initially purchased in 2018.  I started a consulting business in mid-2020 in which I operated out of my home and for my 2020 return, I filed using the regular method and took a partial year depreciation expense.  Now that I've sold the property in 2024, would I only report the actual depreciation I was allowed or allowable for 2020 forward and not any for 2018 and 2019?  It doesn't seem correct to have to report for depreciation for years 2018 and 2019 when I didn't have a business (Sch C) or take any depreciation deduction on my return.  I appreciate any feedback on this.  Thanks!

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