unallowed depreciation on home business from prior years

[gsks]

I have discontinued my home business the end of 2021. I have depreciated the home office over 12 years, however the last 3 years the depreciation expense was not allowed.  It amounts to about $14,000 that isunallowable.  This year I have converted that home office plus more space into a residential apartment.  This is in my personal residence and I still live here.  I want to convert to personal us as of January 1,2022. and then convert to Residential Rental Property.  what do I do with the unallowable  depreciation amount.

[tagteam]

@AmeliesUncle 

[AmeliesUncle · Accepted solution]

I don't think you really 'do' anything with it, at least not right now.

It remains suspended until you sell the home, in case you use it again for a home office.  So just keep a permanent note to yourself of that amount, in case you need to know about it in the future.  As a side note, that amount seems large for three years of depreciation of a home office (unless your office was a very large portion of your home, or your home is a multi-million dollar home), so you may want to double check that is the correct amount.