Hi all: I am working with a client who is an S-Corporation and they are setting up an accountable plan for employee reimbursements where we will be reimbursing the shareholder for their home office space, which is used exclusively and entirely for business.

My question is: It's easy to come up with the reimbursable amount using the Form 8829 as a guide, but how is everyone tracking the depreciation taken on the shareholder 1040 that will eventually need to be recaptured when the home is sold? I'm leaning towards putting it in as a "other" asset and just manually updating the accumulated depreciation taken, and pointing it to "type = land" so that no actual depreciation is being taken since the client is getting reimbursed from the S-Corp.

Curious if anyone else has the same dilemma, or if there's an easier way to do this. Thanks in advance!