Home office depreciation "The cost of your entire home"

[ag19501]

Home office depreciation of house "The cost of your entire home", If I purchased with someone we are not married and file separately, would i put the sale price or would I put half that amount here?

They do not file a home office on this home. It is both of our 100% of the time home.

[VictorW9]

Yes, you can take your proportionate share of the cost of the home and depreciate the portion you used for home office. Other home office expenses will need to be apportioned accordingly based on your share of the home. However, if you are taking home office deduction, there are few things you need to be aware of.

1) Whether you take depreciation or not, depreciation recapture will apply when you sell the property.

2) Depreciation recapture will be taxed at long term capital gains rate based on your income level at the time. Currently those rates are 0%, 15% or 20%.

Here's the IRS link for additional information on how to do this.

[Edited 2.06.2020 | 9:15pm]