Depreciation calculator for home office

home office depreciation calculator

If you carry business or profession from a portion of your home, you are allowed home office tax deduction as also depreciation on the property. Please read Home Office Deduction Calculator If you are using Form 8829, after calculating your deduction for the business use of your home (Part II), you can figure your depreciation deduction in Part III. The depreciation calculator is created based on 2019 instruction for Form 8829

Home office depreciation calculator

Method of depreciation used in calculator

You need following to compute the depreciation on home office

  1. Basis in the Home on the Date ,you started to Use your a portion of your hom as Office. The basis usually include cost plus the cost of any improvements to the property.
  2. The Cost of the Land.. This has to be reduced from basis
  3. The Date of start of Office
  4. The Percentage of home used for business purpose
  5. The Depreciation Factor (from the Instructions for Form 8829): 2.461% which is given below for 2019,

Home office depreciation factor- 2019

MonthDepreciation Factor
January2.461
February2.247%
March2.033%
April1.819%
May1.605%
June1.391%
July1.177%
August0.963%
September0.749%
October0.535%
November0.321%
December0.107%

Example for depreciation computation

David started using a home office in May 2019. Other relevant data are :

  • Basis in house =$300,000.
  • Land cost : $30,000.
  • Improvements to property : $20,000
  • Area of office: 120 square feet
  • Area of home is 1,200 square feet.

Adjusted basis of house = $270,000 ($300,000 – $30,000)

Depreciation Factor for the month of May= 1.605% .

That means the total deprecation for house for year 2019 equals: $270,000 x 1.605% = $4333.5

Depreciation deduction for her home office in 2019 would be: Total depreciation x % of business use which comes to $4333.5 x 10% = $433.35

This amount is carried back to Part II of Form 8829 to complete the business use expense deduction:

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