Home depreciation

3 replies
20 views

I wanted to know about the depreciation of my home which I've owned for 20years. When I file taxes with Turbo Tax do you calculate the depreciation?

DoninGA

Level 15

There is no depreciation on a personal residence, not used as a rental or in a business.

sweetberry63Author

Level 2

I started a business this year and my home address is used as the business address. Can depreciation be claimed this year?

DoninGA

Level 15

@sweetberry63 wrote:

I started a business this year and my home address is used as the business address. Can depreciation be claimed this year?

Only the area of the home that is used Exclusively for the business would be able to be claimed as a home office and then be able to be depreciated.

Go to this IRS website for information - https://www.irs.gov/newsroom/heres-what-taxpayers-need-to-know-about-the-home-office-deduction

Note - When the home is sold any depreciation taken Must be recaptured and is taxed as long term capital gains with a maximum tax rate of 25%.