Building a home office

We are in the process of building my husband a separate home office from which to run his business. Can we deduct any of the construction cost, or simply the operating expenses once he is actually in the space?

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The improvement will be added to the basis of your home. The part that is used for a home office will be prorated by square footage and you can take that percentage of expenses and depreciation, once the office is ready and available for use.