I bought a small house in a residential neighborhood to use as an office. TT asks how to categorize this asset, Nonresidential real estate, Qualified retail...Nonres RE?

keithfival · ‎June 4, 2019

Nonres real estate is the closest one but does it matter that it's in a residential area?

IsabellaG · ‎June 4, 2019

I would classify this as Non Residential Real Property, because the IRS says that if you convert one room of your house to a home office, you depreciate it as nonresidential real property, and your situation is much the same, except that it is an entire house.

https://www.irs.gov/publications/p946/ch04.html#en_US_2016_publink1000107513

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IsabellaG · ‎June 4, 2019

I would classify this as Non Residential Real Property, because the IRS says that if you convert one room of your house to a home office, you depreciate it as nonresidential real property, and your situation is much the same, except that it is an entire house.

https://www.irs.gov/publications/p946/ch04.html#en_US_2016_publink1000107513

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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I bought a small house in a residential neighborhood to use as an office. TT asks how to categorize this asset, Nonresidential real estate, Qualified retail...Nonres RE?