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31
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45
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Katherine Wiltse
Pro Member
  • Real Estate Agent
  • Ava, MO
45
Votes |
31
Posts

Accelerated Depreciation on a Househack?

Katherine Wiltse
Pro Member
  • Real Estate Agent
  • Ava, MO
Posted

Hi BP community! My husband and I recently purchased a new home in Southern Missouri that has a large shop w/ apartment on it. A CPA I met with discouraged us renting it and encouraged classifying it as a home office to get a $1500 tax credit. We also started a farm LLC and she said there would be benefits for using part of the shop towards farm write-offs (I was considering milking goats in the shop). She isn't very aggressive and also discourages using accelerated depreciation. Here is what I am wondering: can we do a cost seg on just the shop/apartment, even if we are living in a home on the same parcel? Could we just classify a bedroom in our house as a home office to use that tax credit (sorry if Im using the wrong terminology there)? We both also became realtors this year and I am wanting to legally reduce our tax liability as much as possible. We sold our previous home within a year and are looking as some capital gains tax there, although I think after expenses it will be less than 40k gains. Sorry for all the words! All advice is appreciated!!

Living in Southern MO Logo

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