Started business in 2016. This included building an addition on our home that is now a workshop, used solely for business. Cost of addition: $60,072. How to deduct this?

[applewax]

I don't see the section for Business Assets. (Currently working on Income & Expenses for business)  Can I expense any of the $60k as Start-Up Costs?

I assume if cost of addition is amortized and depreciated, I can not take home office deduction also, correct?

[RichardK · Accepted solution]

The cost of building an addition to your home, that is used exclusively for your business, would generally be depreciated,  click here for more information.

Start-up costs are expenses relating to developing your business, like pre-opening advertising. You can elect to expense up to $5,000 of your start-up costs and the remainder you can amortize, click here for more information.