Home depreciation on both Schedule E and Form 8829?

[Contamine]

My previous accountant always entered a depreciation expense for my home on my Schedule E in relation to rental income (I rent part of my home), but never on my form 8829 for my home office deduction which is tied to my Schedule C for self-employment income. TurboTax says I am required to deduct the home depreciation expense for business use of my home. Am I allowed to take the home depreciation expense on my Schedule E AND on my form 8829? (Some background info: my rental space is 25% of my home and my home office is 10% of my home.)

[Carl]

Since you are required to depreciate business property, be it SCH E and/or SCH C, yes you should be taking depreciation on the SCH E for the 25% of your primary residence that is classified as rental property, and depreciation on SCH C for the percentage of space classified as a home office for your SCH C business.

I can't resist mentioning though, that 10% for a home office seems rather large to me. Maybe you include in that space used for storing product you sell in your SCH C business, and that would justify such a large percentage for the home office then. Either that, or you have a really tiny house, which would not be at all unusual.

Now one thing you want to make sure of, is that your percentages are correct. As an example, if your house is 1000 square feet and you rent out 250 square feet, then 25% of your property is SCH E rental property use. Then if 100 square feet is used for a home office for your SCH C business, that would be 100 sq feet out of the total 1000 square feet, or 10%. It would "NOT" be 100 sq feet out of the 750 square feet not being rented.

[Contamine]

Wow, that is about the clearest, most well explained answer I could have hoped for! And actually, my home is only a little over 1000 square feet so the home office space IS tiny. Thank you also for clarifying how the square footage percentages should work. So helpful!