Home Office Deduction: Must I depreciate home improvements?

[enfinityTX]

All:

I understand that when I use the standard home office deduction, I must include the depreciation for my home (or I'll lose money comes the time to sell the house) because the IRS is going to make me pay for the home office depreciation when I sell my house even if you didn't claim it (link).

However, must I also include home improvements in my home office deduction? I am asking since the IRS would never know that I completed home improvements (unless I report improvements when I sell the house -- but since $500,000 home sale gains are tax-free for married couples, I would not really need to report home improvements comes the time to sell the house).

Any insights are greatly appreciated!

[Mike9241]

what type of home improvements, remodeling the kitchen would not be part of the home office deduction?

[enfinityTX]

Mike: This was a bathroom remodel. While this is of course not directly attributed to the office, Turbotax considers this indirectly (% of the home). Moreover, the examples that are listed under improvements include things such as "Installation of a fence; Paving of a driveway" -- this led me to believe that remodeling of other parts of the house is completely fine.  Am I missing something?

Thanks!

[JulieS]

Since this is an improvement in your home, part of which you are using for business, a bathroom remodel can be depreciated as an indirect home office expense. 

On the other hand, depreciating it is not required as it is for the home itself.