2106 depreciated assets-now what?

[Margaret CPA in OH]

In reviewing clients for organizer pages, I noted some number who have been taking expenses on 2106 for those unreimbursed by employer.  This includes home office for 2 clients where it was required.  As these are no longer deductible, do I now take back into income the expense or just convert now to personal use or ?  I think one home office was simplified method but not the other one.  Yuk.

[Max W]

It just converts to personal use.  If and when the house is sold, then the accumulated depreciation is deducted from the Sec 121 allowance, which in some cases won't make any difference.

[Margaret CPA in OH]

That's what I thought.  There are a few office assets, too, but personal now.  One client will be very, very unhappy but I've been warning her for a couple of years as the local return was going to stop allowing the offset anyway.  A professor had several thousand in travel expenses for research and foreign lectures encouraged by the university but not supported.  At least they have been warned and will have to try harder with the employers.

Thanks for confirming.