If I didn't claim depreciation for a home office from 2007-2015, how do I calculate the allowed deduction after May 1997 for a home I sold in June 2018?

[Coleen3]

Take your depreciation for 2018 and double it for years 1998-2017, each year. For 1997, take 1/5 of the yearly amount.

[Edited for depreciation table April 1, 2019 1:00PM]

[themorganhome]

What depreciation for 2018? I only had the business between 2007 to 2015. I've never claimed any depreciation for my home or home office. The question says claimed depreciation deduction or allowed deduction. I'm wondering three things. 1. Should I have claimed depreciation for my home office the years I used it? 2. If I didn't take the depreciation deduction do I still need to enter a value for recapturing depreciation on my home now that I've sold it? 3. What value do I enter for depreciation if I've never calculated it before? My home office was 120 sq. ft. and a business percentage of 4.69% of the home. Can you help me figure out what value I need to enter for "Enter the total amount of depreciation you deducted (or were allowed to deduct) on this home after May 6, 1997. There are two fields 1. Depreciation After May 6, 1997  2. AMT Depreciation After May 6, 1997

[Coleen3]

1) yes 2) yes 3) take 4.69% of cost and use the table added to the answer in the screen shot for the depreciation percentages.

[themorganhome]

I'm sorry, I still don't know exactly what you mean. Take 4.69% of what cost? Any chance you could put it into a formula form so I know what variables I need to find and what equation to calculate to find the correct numbers? If you do, please be clear about what the variables are so I know for sure which numbers to enter into the equation.

[Coleen3]

Your home cost. If your home costs $100,000, then 4.69 % (Bus percentage) is $4,690 x 1.605% (placed in service 5th month of first year) Years 2-end of depreciation are $100,000 x 4.69% x 2.564%

[themorganhome]

Do I use the home purchase price or do I have to find out what the home value was for each year? Do I enter the value in the "Depreciation After May 6, 1997" or "AMT Depreciation After May 6, 1997"?

[Zbucklyo]

Home purchase price plus any capital improvements you made to the house prior to the start date of the home office.  By the way, TTColeen misread your question as having started the home office in May.  The start date is not clear from your post, but you take a partial amount of depreciation for the years in which you first put in the office in service, and when you took it out of service. Her attachment works for the first year, and you can use the year 40 amounts for the last year.  For example, if you took the office out of service in June 2015, you take 1.177% of 4.69% times cost basis for that year of depreciation.  Don't worry about the difference between this and AMT depreciation.

[themorganhome]

If we purchased TurboTax Premier at Costco, is there an upgrade path to go to TurboTax Live, or would we just have to pay for both (the one we already bought and the cost of Live)?