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Soundguy
New Member

Home office section asking for "cost of home"

I bought my home in 2002. I have refinanced 2 times since then for larger amounts. I didn't start declaring a home office until a few years later (I don't know what year, which its asking for but it's been at least 10 years).   Turbotax is asking me for the cost of my home. Do I put in the original amount? The last amount I refinanced it for? Does it matter?

Any help is appreciated.
I've only done (or had someone else do) my taxes on paper and this question has never come up.
The business is TV/film production.
3 Replies
MichaelMc
New Member

Home office section asking for "cost of home"

Yes, it matters!

The cost of your home is being requested in order to set up the home as a depreciable asset, so that the home office percentage of depreciation can be included in your expenses each year. 

Refinancing is not part of this calculation. The value of an asset for depreciation is not based on appraisals, but arms-length transactions that established value. The cost of your home is what you paid for it, plus any adjustments to basis since your original purchase date, such as a new roof, upgraded HVAC system, etc.

Soundguy
New Member

Home office section asking for "cost of home"

Edited: Thank you!
Soundguy
New Member

Home office section asking for "cost of home"

please ignore my last comment. (I cant figure out how to delete it). My info was incorrect after looking things up. Thanks again for the original response.
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