I take actual expenses for a home office deduction. Form 8829 line 37 for 2026 has a higher amount than the same line on last year's form. I have no idea why TT changed it and can't find any way to correct it. Why is it different? How can I correct it? I'm using Windows Home & Business desktop.
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I meant to say for 2025 taxes.
TurboTax could have changed Line 37 of Form 8829 (cost basis) because of a change in prior-year depreciation, an incorrect "prior depreciation" entry, or updated land value calculations. It could also be due to changes in business-use percentage or improvements made to the home, which alter the total basis. If any of these factors applies, then the change should be correct.
The IRS Instructions for Form 8829 state, for Line 37:
Enter on line 37 the cost or other basis of your home (including land), or, if less, the fair market value of your home on the date you first used the home for business. Do not adjust this amount for depreciation claimed or changes in fair market value after the year you first used your home for business.
I bought the condo in 2024 and used the price I paid for it on the 2024 form, which is the first time I reported this home office. I didn't change any numbers related to the purchase, so TT shouldn't have changed that entry--as the instructions make clear it should be the same as the first year I used the office. Today I discovered--after a LOT of digging around--that I can change the amount on the asset worksheet. So I think I'm good--but still puzzled about why TT changed it.
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