Line 17 of Form 4562

[taxdean]

For some reason, 2022 TurboTax desktop is not picking up the MACRS depreciation from prior years, which is on line 17 of Form 4562.  Every prior year that line has bee pre-populated.  I did place into service a small home improvement this year and that is the only home office depreciation it is counting.   The TurboTax help team seems stymied, suggesting that it might have occurred because I used section 179 for an office chair in 2021, I could probably enter it manually if I had to (there were several home improvements over time), and I suspect that would cause me to have to do so manually every year and I might miss when some of the depreciation exceeded its 39 year window.  Everything else seems to have been transferred from last years file, such as my state tax refund, etc., etc.  Help, please!

[SantinoD]

It is possible that the asset has been completely depreciated. When you add an improvement asset, the amount of years it is depreciated is not the same as the home.

When an asset has been completely depreciated, there will be no depreciation deduction in the year you are filing and therefore the program will not show a prior year depreciation amount. Any Section 179 deduction you took will not show prior year depreciation since it has already been completely depreciated. 

[taxdean]

I was (and am) looking at the prior year's (2021) "Form 4562 Depreciation and Amortization Report" and it shows everything as a 39 year life to be straight-lined so I don't think your possibility is what is going on here.  The lion's share is the acquisition of the home itself, which was bought in April of 1995 and put in service in September of that same year.   I was finally able to get some higher-level help at TurboTax and they advised me that they could not fix this (nor explain it) and that re-importing last year's data from scratch had risks too (and I was at the end, doing my final checks, when i found this error and so starting over was not a good option) and so they advised me to enter all of the items manually (both regular and AMT amounts), based on the prior years' report so I did.  It seemed to work fine and is now producing the same straight-line amounts for 2022 as in 2021, so I am good to go now, I guess.  I assume, if your fully depreciated hypothesis was correct, it would not have produced these results for 2022.  I am hoping that I won't have to do this manually each year.  They say that such should not be necessary, that it was probably some sort of a one-time glitch.

Your answer does make me wonder about all my (entire home) improvements, such as kitchen remodel/upgrade, that are listed as 39 years under MACRS.  Are you saying that 39 years for that is not allowed?  I also find it confusing that it is listed as non-residential property although I am hoping that is because it is an office for my Schedule C business, albeit a home (aka residential) office.

Thanks much for all your help.

[RobertB4444]

No, you're correct.  Nonresidential retail property (which is how your home office is classified) is depreciated ove a 39 year life.

@taxdean 

[taxdean]

OK, good, since it has been this way since 1995!  I assume that others see these kinds of glitches from time to time although I do have to wonder if I could have somehow inadvertently been the cause, such as if I deleted all that prior year (placed in service) depreciation data after importing last year's file.

[MattDrummer]

I have a home office for my Schedule C business.   This year we had to do some significant repairs/remodel to the kitchen, bathroom and floors due to water damage.  How do I input that info correctly?  Do I just put it into the depreciation assets for my Schedule C?   Thanks.

[ShirlynW]

IRS Pub. 587 states " if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is a permanent improvement. Examples of permanent improvements are replacing the wiring, or plumbing, adding a new roof, or remodeling." Permanent improvements are not deductible.

Expenses only for the parts of your home not used for the business are not deductible.