HOME OFFICE DEPRECIATION

[HOPE2]

Hi everyone. I really need help.

A client moved to VA from CA around October 2024 and has two W-2 forms: one from CA and the other from VA. For 2023, she had a deduction for her own office expense. As of January 1, 2024, she is no longer using her home office in CA, as she used to be self-employed in 2023.

Now, I entered the "Date of Disposition" as January 1, 2024, on Form 8828, Asset Entry Worksheet. In the middle of this form, we have the "State Depreciation" section. When I click on QuickZoom in front of "Select or Delete State," it takes me to the "Depreciation Option" sheet, and I see the attached picture. She moved permanently to VA, so should I mark it as shown in the picture? 

question : If I entered the date of disposition on federal part that would be ok for stopping DEP on FED and CA?

Thanks for help.

   

[GodFather]

I think the way you have the form filled out, it would remove Virginia information.  If I read the post correctly, the client moved from California to Virginia.  Maybe the state entered should reflect CA instead of VA?

[Terry53029]

You should put date stopped using 12/31/2023, and not 2024

[HOPE2]

Thanks@ Terry53029 , I tried to put 12/31/2023, but a red diagnostic popped up

[TaxGuyBill]

If the office was not used in 2024, delete it. 

It probably should have been reported as ending on last year's tax return.

[IRonMaN]

But I'm curious.  If you are looking at a depreciation schedule for a home office and she moved, whatever happened to the home the office was in?

[HOPE2]

I want to stop the depreciation since she is no longer self-employed. The software shows the amount of depreciation but no income from self-employment anymore. My goal is to ensure the IRS knows not to continue calculating depreciation on their side.

[HOPE2]

@TaxGuyBill you always helpful and thanks.

I want to stop the depreciation since she is no longer self-employed. The software shows the amount of depreciation but no income from self-employment anymore. My goal is to ensure the IRS knows not to continue calculating depreciation on their side. You mean I do not need to put the date Infront  of :

Date of Disposition? Just delete the schedule C from tax return, am I right?

[HOPE2]

Hi @TaxGuyBill 

May I have your opinion on my last post? You meant to just delete Schedule C, and that's it—to get rid of the continuing depreciation, and there is no need to put the Date of Disposition, correct?

[TaxGuyBill]

If the business did not exist, yes, you can delete Schedule C (unless there are some assets that used Section 179 or were Listed Property that used accelerated depreciation).

I had originally meant to delete the Asset Entry Worksheet or the 8829, but if there is no business you can delete the Schedule C (which will delete everything associated with it), unless there are assets that I mentioned above.

[IRonMaN]

But if the house was being depreciated, where did it go?

[HOPE2]

Thanks @TaxGuyBill the only client have had for 2023 on schedule C (8829)  it was depreciation of the occupied part of the house regarding home office so what should I do?

Sorry am asking you again, I always feel cooler in the middle of tax season!

[TaxGuyBill · Accepted solution]

I don't quite understand your last comment, but as I said before, if there is no business, delete Schedule C and everything attached to it.

If there is still a business, just delete the Asset Entry Worksheet if the office was not used.