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How do I claim home depreciation as a freelancer?

To claim home depreciation as a freelancer, you first need to figure out what portion of your home is used for work. This can be done by dividing the sqft of your workspace by the total sqft of your home.

Use Form 8829 to report the basis of the home under Part III. Your basis is the purchase price of the home, plus any major repairs that weren't covered by insurance (remodels, new roof, etc.)

The value of the land should be excluded from basis, since only the building is depreciable. (This is easily found on most county assessor websites). Land typically represents 15-25% of the property value. 

The basis should be multiplied by the business-use percentage and depreciated over 39 years. Refer to the table on page 5 of the IRS instructions for how to calculate your depreciation deduction. 

Your depreciation expense will be included in your home office deduction and reported on line 30 of the Schedule C. Be sure to attach Form 8829 to the 1040 when you file. 

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Sarah York, EA

Sarah is a staff writer at Keeper Tax and has her Enrolled Agent license with the IRS. Her work has been featured in Business Insider, Money Under 30, Best Life, GOBankingRates, and Shopify. She has nearly a decade of public accounting experience, and has worked with clients in a wide range of industries, including oil and gas, manufacturing, real estate, wholesale and retail, finance, and ecommerce. Sarah has extensive experience offering strategic tax planning at the state and federal level. During her time in industry, she handled tax returns for C Corps, S corps, partnerships, nonprofits, and sole proprietorships. Sarah is a member of the National Association of Enrolled Agents (NAEA) and maintains her continuing education requirements by completing over 30 hours of tax training every year. In her spare time, she is a devoted cat mom and enjoys hiking, baking, and overwatering her houseplants.

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