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Level 1
posted Feb 15, 2022 12:28:39 PM

How do I calculate home depreciation and AMT depreciation?

Is there a simple formula to calculate depreciation and AMT depreciation?

The house was built in 1916.
We bought it in 2011.
We sold it in 2021.
It was our primary residence.
We used it as home office 2011-2019.
We did not report this depreciation at any other time.
Thank you!

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1 Replies
Expert Alumni
Feb 15, 2022 1:17:48 PM

No.  If you used the home office, and did not use the simplified home office deduction, then you must gather your information from your returns.  Your 2019 return should show your accumulated depreciation used in all year.

 

Once you have that figure you can continue with the sale of your personal residence. When asked for the cost basis you will reduce that by the amount of depreciation used for your home office. As you go through the sale of home you will be asked for the depreciation.

 

The regular or general depreciation is a 39 year recovery period using the mid-month convention.  Basically that is dividing the cost basis of the home (does not include the land) by 39 years.  For the first and last year of use you would further divide that by 12 months then multiply it by the number of full months in service that year plus a half month for the year placed in service the first year and the month removed from service in 2019.

  • Example: Placed in service June 5th, 2011 - this would be 6.5 months for the first year.  Calculate the same for the last year of 2019.
  • Note:  The AMT depreciation would be the same with the exception of a 40 year recovery period (as opposed to 39 years).

See the pages below and please comment here if you need further assistance.