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Simplified Method for Home Office Deduction

The FAQ for Simplified Method for Home Office from the IRS says:

Q21. How is the depreciation deduction calculated under the standard method for a taxable year following a year in which the simplified method is used?

A. If you use the simplified method for one taxable year and use the standard method for any subsequent year, you must calculate the depreciation deduction for the subsequent year using the appropriate optional depreciation table, even if you did not use the tables for the first year the property was used in business.

 

Does TT do this automatically if I use Simplified Method this year and then go back to 

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Simplified Method for Home Office Deduction

You post was truncated but I presume you are referring to the following.

 

You figure the depreciation deduction for a subsequent year in which you use the standard method by determining the remaining adjusted depreciable basis allocable to the portion of the home used in a qualified business use, and then multiplying that basis by the annual depreciation rate for the applicable year specified in the appropriate optional depreciation table. For this purpose, the applicable year is the year that corresponds with the current taxable year based on the placed-in-service year of the property.

 

Which TurboTax should be able to handle.

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1 Reply

Simplified Method for Home Office Deduction

You post was truncated but I presume you are referring to the following.

 

You figure the depreciation deduction for a subsequent year in which you use the standard method by determining the remaining adjusted depreciable basis allocable to the portion of the home used in a qualified business use, and then multiplying that basis by the annual depreciation rate for the applicable year specified in the appropriate optional depreciation table. For this purpose, the applicable year is the year that corresponds with the current taxable year based on the placed-in-service year of the property.

 

Which TurboTax should be able to handle.

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