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Home office depreciation life

January 13, 2017 • Anonymous • Log In to Post Comments

I fotgot to put in message title yesterday.

An individual owns and live in a condo unit in a residential highrise.  He rented one bedroom to a tenant and the tenant can use the kitchen and living room as well.  He also used a room for his home office.  Is the home office depreciated over 27.5 years or 39 years?



I am not completely clear on who is using the home office, but here is the answer in either senario:

Landlord using home office - If the condo owner is using a room for his/her home office, then they depreciate the home office over 39 years.

Tenant using home office - If the tenant is using a part of the condo as a home office, then the condo owner should depreciate over 27.5 years because the condo owner's use of the property is as a residential rental property.

It depends upon to which activity the home office relates: (1) a business, or farm activity, then 39 years; or (2) rental property (presumably other than the property mentioned in your scenario) management, then 27-1/2 years.


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