Stopped taking home office depreciation

[Tom in Carolina]

Greetings,

I entered the home office depreciation deduction for a few years in the 1990's and maybe early 2000's.

Do I need to go back and look up the amounts when I sell my main home ?

I thought that after three years the depreciation amounts were wiped out.

Thanks in advance.

Tom

[GiseleD]

If you did not keep track of the depreciation you took through the years, you will need to look up these amounts. These are factored in as depreciation recapture. Depreciation is not wiped out after three years (unfortunately). 

[Tom in Carolina]

Can I add to the basis ?

new roof, HVAC, garage, windows, hot water heater, replaced driveway, etc 

many thanks for your help,

Tom

[Irene2805 · Accepted solution]

Yes, you have to go back and look up the depreciation you took (or should have taken).  This is subtracted from the basis of the home when determining any capital gain.

Yes, you can add all those items to the basis of the house.

[Tom in Carolina]

Irene - Many Thanks for your help ! Tom

[Opus 17]

You must adjust your basis downward for depreciation taken for use of the home in business (home office, rental), any casualty losses you deducted, and certain other payments or adjustments.  (For example, if you received $1000 for giving the local utility an easement, that was not taxable at the time, because it was compensation for loss of value, but it reduces your basis.)

You can adjust the basis upward for permanent improvements.  An improvement, or betterment, makes the property more valuable or extends the useful life of the property or its subsystems.  The improvement must still be part of the property.  (For example, if you replaced the roof in 1995 and again in 2015, you can only include the second roof as a basis adjustment.)  If you received any tax credits, such as for energy efficient improvements, reduce the amount of adjustment by the amount of the credit.   Painting, cleaning, and minor repairs that keep the property as-is can't be used to adjust your basis.  (However, if you painted as part of a remodel, you can include that in the cost of the improvement.)

[Tom in Carolina]

Thanks Champ !