Help w/Depreciating My Home

[krosey5]

We bought our home from my parents 3 years ago. We purchased the house for $30,000 less than what the house appraised for. We just started the daycare this year. Do we use the actual purchase price or the appraised price of the house?

[TomCopeland]

house depreciation

Use the lower of these two numbers: the purchase price or the value of the home at the time you started using it for your business.