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Level 2
posted Jan 23, 2025 2:00:06 PM

Capital Improvements on Home PRIOR to Having a Home Office

As the title would allude, I began a business in my home this past year and have owned the home for a decade prior.  I did a search and found this post (https://ttlc.intuit.com/community/tax-credits-deductions/discussion/a-couple-questions-if-we-refinanced-our-home-mult[product key removed]-to-establishing-a-home-office-do/01/280943#M34136) that kinda answered my question in that I do include the prior capital improvements. Would I

 

  1. Include them in the initial screen "Cost of your entire home" even though the dates of those improvements are different than when I purchased the house, or
  2. Enter the house cost basis (less land) then add the improvements as additional assets categorized as improvements for the entire house? (screenshot is of this way in case I am not using my words correctly!)

 

Thanks!

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1 Best answer
Expert Alumni
Jan 23, 2025 5:35:46 PM

You should add the improvements to the cost of the house and enter that sum as the basis of the house. You should not enter them individually. Your enter the date you started using your home for business as the beginning date for depreciation on the home.

4 Replies
Expert Alumni
Jan 23, 2025 5:35:46 PM

You should add the improvements to the cost of the house and enter that sum as the basis of the house. You should not enter them individually. Your enter the date you started using your home for business as the beginning date for depreciation on the home.

Level 2
Jan 23, 2025 5:40:59 PM

Great, thank you for clarifying that @ThomasM125 ! Going forward, if I do any capital improvements, I add them as I was doing previously?

Expert Alumni
Jan 26, 2025 11:22:57 AM

Yes, any future capital improvements can be added as you were doing previously. 

 

@ScottT18 

Level 2
Jan 27, 2025 10:39:21 AM

Amazing thank you so much for confirming that @LeticiaF1