Rental Property/ Home Office Depreciation

[mustangboss]

I sold my property in 2019, a property that I had a home office in, as well as rented out a bedroom .  This activity was in 2016-2018 for the most part.

The TurboTax question I am stumped on is - " Since you used your home for business purposes or rented it out, you must reduce the home's cost basis by  the total of any depreciation deductions that you took over the years.

Depreciation Taken on this home ______

Depreciation Taken for AMT ________

[ThomasM125]

You are required to depreciate business property. So if you rented your house or used a home office, you must calculate the depreciation applicable to it and report that when you enter the house sale information in TurboTax.

You can manually calculate the deprecation if it is not in the program. Just take the cost of the house, excluding the land value, divide it by 27.5. That is the deprecation amount for one year. Multiply that by the number of years you used it for business. Finally, multiply the depreciation amount you come up with by the portion of the house you used for business (the business use percentage) and that will be your depreciation.

The AMT depreciation would normally be the same as the regular depreciation in the case of real estate.

[mustangboss]

I located it.   The answer is $3,697 for current Depreciation.  I found this in TurboTax 2016.  I then take it by how many years it was used for business, I am going with 4, but need help finding or determining business use percentage.

Thanks in advance.

[mustangboss]

Update***

Do I enter same amount for both fields?

Depreciation Taken on This Home

Depreciation Taken for AMT

[DeanM15]

Generally speaking, Depreciation and Depreciation taken for AMT are largely the same for rental real estate. 

If you have not been subject to the Alternative Minimum Tax, it is even less of an issue. So yes, you can put the same amount in both boxes.  

[mustangboss]

Thanks!  I see that I have Form 4562 completed for 2 separate tax years, same amount.   I purchased this home in 2012

TurboTax Question- Enter the total amount of depreciation you deducted ( or were allowed to deduct) on this home after May 6 1997.  If you claimed depreciation in 1997, calculation the depreciation for the part of the year after May 6 1997. 

[DeanM15]

The questions here are how many years you had a home office and how much depreciation you took each year.

If you only took depreciation for two years, just put in the depreciation that you took for those two years.

[dcaronna2]

I hope you can help

In 2001 we built a home and took the home office deduction for the past 18 years.  We sold the home 7/31/19 and proceeded to rent a home which we wish to take the home office deduction for the 5 months of 2019.  

How do we calculate the depreciation on the home we sold and how much can we claim on our rental?

Thanks

[dcaronna2]

is the depreciation of the home office deduction taken in tubo tax for each year?

[JamesG1]

Yes, an office-in-home is a business asset and you depreciate a portion of a business asset each year.

Please see this TurboTax help under Deducting rent, or depreciating.