Contact UsI am curious whether a home sale must reduce basis for depreciation allowable for an office in home. I haven't advised clients to take depreciation when they will be selling their residence anytime soon. I know that rental properties require you to reduce the basis upon sale; does this also apply to a home office?
Question Owner
I'm just not sure office in home is the same as a rental - I guess I'm asking what code section do you take the property classifications from?
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575 weeks ago
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Tax Professional Answers
Kathryn Morgan
There you fall under the 'allowed or allowable' rule of depreciation. When the property is sold the depreciation must be recaptured even if they didn't take it, so they might as well take it. The only time you do a home office that you shouldn't take depreciation is if they are renting the home.
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575 weeks ago