i8829.pdf

Here are the key points summarized:

Depreciation of Home Used for Business

• Simplified method used for 2023 and earlier years
• Percentage to enter:
  • Before May 13, 1993: Pub. 946 percentage adjusted by instructions under Sale or Other Disposition Before the Recovery Period Ends
  • After May 12, 1993: 2.564%
  • After May 12, 1993, and before 2024 (except as noted): 2.564%

Line 42

• Multiply line 40 by percentage on line 41 if no additions and improvements were placed in service after using home for business
• If additions and improvements were placed in service, figure depreciation allowed on these expenditures by multiplying the business part of their cost or other basis by the percentage on line 41

Line 43-44

• Carry over excess operating expenses to 2025 if expenses are greater than current year's limit
• Carry over excess casualty losses and depreciation to 2025 if these amounts exceed current year's limit

Form 4562, Depreciation and Amortization

• Complete and attach Form 4562 only if:
  • First used home for business in 2024
  • Depreciating additions and improvements placed in service in 2024