Home office: change of space and temporary brief interruption of use

[slara22]

I have 2 hopefully quick questions regarding my home office:

1. For 9 years, I have had a home office that represents 5% of my home. This year, we reorganized the space in our home and I moved my home office to a larger room–one that represents 15% of the space in our home. How do I deal with this change in TurboTax? It is for my same business, but in a larger space. Should I just enter the new space size even though it is different from what I have reported over the years? Would this change complicate anything moving forward?

2. For one year (Aug 2021- July 2022) I stopped using my home office and thus, did not claim any deductions for it, including depreciation.  Is it ok to simply resume using my home office and claiming a deduction (and depreciation) for it, as of Aug. 2022? All expenses, of course, allocated to the months of Aug-Dec 2022.

Thank you in advance!

[ShirlynW]

No. This will not complicate things moving forward. TurboTax will allow you to add another home office which allows you to enter the date you started using the new home office.

Here's how you would do that:

1. Open TurboTax
2. In the search box in the upper right enter "Schedule C".
3. Take the "Jump to Schedule C" link.
4. Select the Business and Edit.
5. Scroll down to Business Expense.
6. Select "Home Office Expense" and Update.
7. On the screen, "Home office summary", add a Home Office.

[slara22]

Thank you @ShirlynW  for your response!

This is the same home office I have always had, I just changed physical spaces within my home so that I have more space. It is not a second home office.

If I add another home office, wouldn't depreciation start all over again? Is there a way to just indicate that the size is larger as of 2022?

Thanks again,

Susanna

[DavidD66]

You should indicate that you stopped you using the previous home office, and start a new home office.  The amount of space used for the home office is linked to the prior year depreciation amounts, and therefore the accumulated depreciation.  You need to make sure that your depreciation records are correct so that if/when you dispose of the property, you can properly calculate determine your basis, calculate your gain or loss, and any depreciation recapture tax owed.  Retire the old home office by editing it, and indicating that in the interview.  Then start a new home office.