- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
My client has claimed a home office for a couple of years on the Schedule C, for 2019 the business has closed. How do I recapture the depreciation we have taken over the years?
Using the 8829 Asset entry worksheet I go to the "Disposition" section and enter the date the business ended. The programming is entering the amount we claimed as depreciation on the "Personal Residence" line but I don't see anything carrying over to the Schedule D or 4797?
Can someone assist in what I'm missing to get the recapture to appear?
Thanks
GC
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Did they sell the home?
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
You will recapture the depreciation when the house is sold.
Ya gotta look this stuff up.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
No, no sale
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Understand. Thank you.
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
But, what happens if the sale doesn't happen in 20 years and I'm retired and no longer doing their taxes. They surely won't remember to do this.
Also, when the Schedule C is closed out and won't carryover to 2020 how will this be remembered?
GC
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Paperwork!
- Mark as New
- Bookmark
- Subscribe
- Permalink
- Report Inappropriate Content
Taxpayer is responsible for knowing the rules.
Close the business and advise them there maybe recapture that needs to happen should they decide to sell the home. It is there responsibility to keep records and pass on accordingly.
All kinds of things can happen.