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How do I report home office simplified method for my old house and my new house?

david3
Level 7

I know the IRS regs say that the home office simplified method can only be used for one home. However, if a TP has been using the simplified method for their old house and then moved during 2020, does this mean they have to select the actual method for their new house? This doesn't seem to be correct.

However, PS errors indicate that I can't split the usage between their old house and new house.

The TPs didn't, and probably can't, provide the actual expenses for the new house. So I wouldn't be able to report the actual method anyway. Plus, they wouldn't want to report depreciation for the home office.

How can the simplified method be reported for this TP?

Thanks.

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1 Solution

Accepted Solutions
dkh
Level 15

Per IRS Pub587   - if you moved, you can use simplified method on only one of the homes

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3 Comments 3
dkh
Level 15

Per IRS Pub587   - if you moved, you can use simplified method on only one of the homes

david3
Level 7

Ok, thanks.

I guess the deduction will only be reported for the old house since the TPs don't want to deduct depreciation, which would be required if they report under the actual method.

Appreciate your help.

 

dkh
Level 15

You're welcome