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Level 2
February 10, 2024
Question

T/P was depreciating asset 50% for home office but no longer lives in asset now rents living area how to change asset to 100% business use?

  • February 10, 2024
  • 1 reply
  • 4 views
T/P has rental income from the area that used to be T/P home and still uses office area as T/P office. Asset was being depreciated at 50% for home office. There is no separation of expenses for the property.
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1 reply

dkh
Level 15
February 10, 2024

What asset needs changed to 100% ?

 

 

 

Level 2
February 12, 2024

The asset is a house that was taken 50% as a home office while the T/P was living in the house. T/p moved and is now renting the part of the home the T/P was living in, but still uses 50% of house for Office.

dkh
Level 15
February 12, 2024

Why couldn't you leave the home office asset as is?   It is still 50% of the same property. 

And you add the % of home cost that is now rental property to  Sched E assets