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?