I am trying to fill out the Form 8829 and wanted to use the regular deduction rather than the simplified, but didn't use the regular deduction last year. So, I'm having to figure out the depreciation of the home office. The problem I ran into is that the date acquired - or when we bought the home, which was in 2021, but we lived in the same residence previously renting, so I started teaching here in 2015. The form states that I cannot have a date placed in service as earlier than when it was acquired.
How do I reconcile this value that they say is an "unacceptable value?" Is it fine to state that the "Date Place in Service" is in 2021 even though I was teaching before that?
Also, I am assuming I would then figure out the depreciation based on when we bought it in 2021, so if I am doing the taxes for 2023 the depreciation would be for only 2 years?
Any help would be appreciated. Thank you.
You aren't able to take depreciation on the residence until you purchased it. Even though you had a home office while you were renting, depreciation starts on the date of purchase (assuming you didn't stop using it as a home office at any time).
Thanks, I do understand that. I updated my question to include whether it is acceptable to make the "Date acquired" the same as the "date place in service" even though I was technically teaching in the same residence before 2021.
As a result, I am assuming from what you stated earlier in your reply that I would take the depreciation for only 2 years now from 2021-2023 since we bought in 2021?
Thanks!
Yes, the date acquired and date placed in service are the same for your situation. Your prior use doesn't count because you did not own the property.