Depreciation

[stewart-2019]

I am an independent contractor. I just had a  main shut off value installed. I was told that I can deduct the cost on form 8829. Does this have to be depreciated or can I take the safe harbor rule

[KrisD15]

To clarify, was this a repair on your home and you also claim a home office? 

What method do you use for the home office, Actual/Regular or Simplified ?

[stewart-2019]

I take the home office tax deduction and I use the actual expenses

[AmeliesUncle]

Is this a water turn-off?  Is using water part of your business or home office?

[stewart-2019]

It is the main shut off value to the entire house

[stewart-2019]

Yes I am an independent contractor and I take the home office tax deduction

[PatriciaV · Accepted solution]

Yes, you can claim this home improvement as an additional asset for depreciation on your Home Office deduction. The Safe Harbor Election is not available for this asset because your home is not used 100% for your business. The depreciation expense you can claim is based on the percentage of business use that you entered for the Home Office. 

Since this is part of your residence, the recovery period is 39 years on a straight-line basis. This means the portion of the cost allocated to the Home Office will be divided by 39 and the same amount will be reported each year.

@stewart-2019