Confused about depreciation of a home and business use

gene20077 · Joined: 18 Feb 2008 Posts: 7

Hi,

I bought a house in cash. I also found form 4562, where it says I can
depreciate the home over 27.5 years, which I did. (Took the purchase
price and divided thru 27.5.)

But I use also half of it as my only business place. Can I deduct some
more or how do I that properly?

Any ideas?

Thanks in advance!

Archived from group: misc>taxes

Paul Thomas, CPA · Joined: 25 Aug 2007 Posts: 3094

wrote
> I bought a house in cash. I also found form 4562, where it says I can
> depreciate the home over 27.5 years, which I did. (Took the purchase
> price and divided thru 27.5.)
>
> But I use also half of it as my only business place. Can I deduct some
> more or how do I that properly?
>
> Any ideas?

I have an idea. You should stop what you are doing. Do not pass go, do not
collect $100.

Call a local CPA or EA and schedule an appointment ASAP.

You can not depreciate personal use property.

If you have a qualifying home office, for a valid business activity, then
that portion of the home that qualifies may be depreciated and that expanse
taken against your business profits. If you show business losses, then
you're SOL for this year.

The personal use of your home can never be depreciated or expensed.

--
Paul A. Thomas, CPA
Athens, Georgia

gene20077 · Joined: 18 Feb 2008 Posts: 7

On Feb 18, 5:02 pm, "Paul Thomas, CPA"
wrote:
> wrote
>
> > I bought a house in cash. I also found form 4562, where it says I can
> > depreciate the home over 27.5 years, which I did. (Took the purchase
> > price and divided thru 27.5.)
>
> > But I use also half of it as my only business place. Can I deduct some
> > more or how do I that properly?
>
> > Any ideas?
>
> I have an idea. You should stop what you are doing. Do not pass go, do not
> collect $100.
>
> Call a local CPA or EA and schedule an appointment ASAP.
>
> You can not depreciate personal use property.
>
> If you have a qualifying home office, for a valid business activity, then
> that portion of the home that qualifies may be depreciated and that expanse
> taken against your business profits. If you show business losses, then
> you're SOL for this year.
>
> The personal use of your home can never be depreciated or expensed.
>
> --
> Paul A. Thomas, CPA
> Athens, Georgia

Hi Paul,

Last year I saw a tax professional. I provided her with an exact list
of my expenditures and she even screwed these up and used WRONG
numbers. Her boss admitted that she was wrong but her boss didn't find
all her mistakes either.

Thanks, you tax officials. My trust is destroyed.

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article ,
Paul Thomas, CPA wrote:
>
> wrote
>> I bought a house in cash. I also found form 4562, where it says I can
>> depreciate the home over 27.5 years, which I did. (Took the purchase
>> price and divided thru 27.5.)
>>
>> But I use also half of it as my only business place. Can I deduct some
>> more or how do I that properly?
>>
>> Any ideas?
>
>
>
>I have an idea. You should stop what you are doing. Do not pass go, do not
>collect $100.
>
>Call a local CPA or EA and schedule an appointment ASAP.
>
>
>
>
>
>
>
>You can not depreciate personal use property.
>
>If you have a qualifying home office, for a valid business activity, then
>that portion of the home that qualifies may be depreciated and that expanse
>taken against your business profits. If you show business losses, then
>you're SOL for this year.
>
>The personal use of your home can never be depreciated or expensed.

And what's up with the 27.5 yr which is very wrong for a home office?
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

Arthur Kamlet · Joined: 25 Aug 2007 Posts: 2053

In article ,
wrote:
>On Feb 18, 5:02 pm, "Paul Thomas, CPA"
>wrote:
>> wrote
>>
>> > I bought a house in cash. I also found form 4562, where it says I can
>> > depreciate the home over 27.5 years, which I did. (Took the purchase
>> > price and divided thru 27.5.)
>>
>> > But I use also half of it as my only business place. Can I deduct some
>> > more or how do I that properly?
>>
>> > Any ideas?
>>
>> I have an idea. You should stop what you are doing. Do not pass go, do not
>> collect $100.
>>
>> Call a local CPA or EA and schedule an appointment ASAP.
>>
>> You can not depreciate personal use property.
>>
>> If you have a qualifying home office, for a valid business activity, then
>> that portion of the home that qualifies may be depreciated and that expanse
>> taken against your business profits. If you show business losses, then
>> you're SOL for this year.
>>
>> The personal use of your home can never be depreciated or expensed.
>>
>> --
>> Paul A. Thomas, CPA
>> Athens, Georgia
>
>Hi Paul,
>
>Last year I saw a tax professional. I provided her with an exact list
>of my expenditures and she even screwed these up and used WRONG
>numbers. Her boss admitted that she was wrong but her boss didn't find
>all her mistakes either.
>
>Thanks, you tax officials. My trust is destroyed.

Great advice.

And if you ever get wrong advice from a doctor, swear off
doctors too.

Ask around. Word of mouth is pretty powerful. You might
not find out who is not appreciated, but if someone has
had pretty good experience with a tax profesional, she will
be quite likely to tell you that.

Same way you might choose a doctor.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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