I have a Farm business. I have goats, Emus, chickens and also a large garden. I have a Farm Market in the summer. Sell Eggs part of the year. The barn is for animal shelter & storage and I already have an office expense in the house itself for, business accounting. Plus I use the space to grow plants to sell & grow fodder for my animals. How do I add a second expense for the barn? I tried adding it as an expense but it asks for the cost of the barn. It was included in the coast of my property when we bough the house in 2007. I have an outside greenhouse which I have to repair again before using and am in the process of building a second greenhouse on our deck.
To add the expense for the barn, you will need to make a reasonable computation of the barn's cost/basis. Since the purchase price of your home included the barn, one way to make the computation is to take the total square footage of all the buildings on the property, including the house, and divide the barn's square footage by the total square footage to arrive at a percentage. Then apply this percentage to the price you paid for the property when purchased in 2007 and use that amount as the cost of the barn.
To add the expense for the barn, you will need to make a reasonable computation of the barn's cost/basis. Since the purchase price of your home included the barn, one way to make the computation is to take the total square footage of all the buildings on the property, including the house, and divide the barn's square footage by the total square footage to arrive at a percentage. Then apply this percentage to the price you paid for the property when purchased in 2007 and use that amount as the cost of the barn.