Office in home converted back to non office - depreciation?

"SMF" wrote

Obviously it'll depend on tax laws in effect at that time - which is anyone's guess what that'll be.

Currently the depreciation reduces your basis in the home and there would be some amount of gain (if there is any gain at all) attributable to the office portion of the structure. This is true - under current law - for as many years after the business use ends that you sell the house. Exceptions apply for pre 97 depreciation though. See Publication 523 or 530.

If you use the house for home office and living for 3 years, then continue to live in it for 5 years but no home office in these 5 years, then you'll have to only deal with 3 years of depreciation, right?

When you take a business-use asset out of service (including an allowed percentage of a personal-use asset), you stop depreciating it. But you keep track of it until you dispose of it, and then report any tax effects of the disposition.

-Mark Bole