Business assets

Forum|Forum|5 years ago
March 29, 2021
1 reply
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Hi, I have a small business. I use the home office deduction. In 2020 I built a workshop to use for my business (in addition to the home office). I understand that this is a capital asset. Hiwever, I can't seem to figure out which choice within business assets to choose. I am using TurboTax Hime and Business. None of the descriptions seem to fit. Real Estate improvements specifies intefior improvements (like electrical, etc) but there doesn't seem to be a choice for the entire building being built. Anyone know??

TurboTax Home & Biz Windows

ColeenD3

Level 15

You will have to depreciate it separately. Since it is a building, not an improvement, it will also be depreciated 39 years.

Enter the asset in the depreciation section of Schedule C.

528 designsAuthor

Level 2

Right, but the 3 categories are nonresidential real estate (which this is still residential) qualified improvement property (improvements to the interior of a structure) or specific qualified improvements ( roof, heating and air,etc). None of them fit, so do I just choose the first one because it is closest? Or do I break it up by the building shell, then list the other parts like the roof and systems seperately?

Irene2805

Level 15

Enter the new structure as a home office (you can have more than one home office). You can indicate in the interview that the home office "is a separate structure."