Home Office Asset Summary - Cost of Your Home. Do I enter original purchase price or fair market value at the time the home office was placed into service?
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Home Office Asset Summary - Cost of Your Home. Do I enter original purchase price or fair market value at the time the home office was placed into service?
I'm entering info about my home.When I get to the 'Cost of Your Home' screen, it asks for Cost of your entire home. I purchased the home in 1986 but put the home office into service in 2002. The fair market value of the home was much higher in 2002 than in 1986, plus I had refinanced and owed substantially more on the loan than the original purchase price. Can I use the FMV for 2017?
Home Office Asset Summary - Cost of Your Home. Do I enter original purchase price or fair market value at the time the home office was placed into service?
No, you use the lower of the (1) Cost (usually purchase price plus cost of improvements) and (2) the Fair Market Value when it was converted to business use (in 2002).
Refinancing and the amount of mortgage have nothing to do with it.