Home Office - Depreciation on Form 8829

Home Office - Depreciation on Form 8829

When using the Depreciation of Home Worksheet, Form 8829, for Business use of Home, when the home is sold, the taxpayer(s) must recapture any depreciation previously taken on the Home Office, and this is reported on Form 4797. Very seldom do we recommend using the depreciation option on an 8829. For obvious reasons, the gain is so small for the most part, and the disposition is a pain. It's not like other depreciation where you have to recapture "allowed or allowable". That being said, the correct treatment is disposing of the asset via form 4797. If you have the asset summaries from the previous years you should have all that you need to complete it. Don't forget to pro-rate the selling expense with the cost of the land.