Question

taking deduction for building home office

Forum|Forum|3 years ago
November 16, 2022
1 reply
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Hi - we built an attached home office for a teletherapy private practice. How quickly can we depreciate the construction costs as the practice will close in several years. thanks

DavidT0202

Hi @wonorarustow

How many years do you depreciate a home office?

39 years

According to the IRS, your home office counts as “nonresidential rental property” that gets depreciated over 39 years using the straight-line method. Basically, just divide the lesser of your adjusted basis or FMV by 39, and that's the annual depreciation

How do I claim depreciation on my home office?

You can report the home office deduction on federal Form 8829, "Expenses for Business Use of Your Home." This form is filed along with Schedule C, "Profit or Loss From Your Business," on your personal Form 1040 You can include the building materials and other expenses here.

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