Regular Method - No. The greater of allowed (claimed on your return) or allowable (what is required under the Code) depreciation must be considered at the time of sale. You can generally figure depreciation on the business use portion of your home up to the gross income limitation, over a 39-year recovery period and using the mid-month convention and the straight-line method of depreciation. Regardless of whether you determine actual expenses and the correct amount of depreciation, you must reduce your basis in your home by the greater of the allowed or allowable depreciation. Simplified Method - There's a simpler option where qualifying taxpayers may use a prescribed rate ($5 per square foot limited to 300 square feet) to compute the business-use-of-the-home deduction. This option, used instead of determining actual expenses, has the advantage of reducing your recordkeeping burden. Under this option, depreciation is treated as zero and the basis of your home won’t be reduced. For more information, visit Simplified option for home office deduction and FAQs – Simplified method for home office deduction. In addition, under this optional method, you can still deduct business expenses unrelated to qualified business use of the home for that taxable year, such as advertising, wages and supplies.