Contact UsForm 8829, Part III, Line 36. Must this number remain the same each year?
I took depreciation on my home for the first time last year. I was confused about this process however and entered a number on line 36 that was far too low. This year I see what I did wrong and want to enter the correct fair market value for my home. However, I am concerned that a significantly high entry on line 36 may get unwanted attention. Should I be concerned enough about this that I stick with last year's low number? Thanks.
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Tax Professional Answers
John Stancil
That line should reflect the correct value, but it may not be the fair market value. You should use your cost basis or the fair market value as of he date you began use as a home office, whichever is lower. Either way subtract the cost of the land to determine the base for depreciation. You may need to amend your return for last year.
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419 weeks ago