Hi,
In 2022 I completed a bathroom remodel. 40% of my home is used for a home business, since 2007. The remodel is considered a home improvement, not repair, so I can not apply the costs for the remodel as an business expense. TurboTax Home and Business help states I need to add the costs as an asset, but it does not state how or what type of asset. I only know how to add business assets in TurboTax, how do I add a home improvement asset (capital improvement?).
I'm trying to understand the basis for my home property. While in TurboTax Home and Business 2022, I was reviewing the forms and started looking into form 8829, and associated worksheets. Looking at form 8829, line 1 states "Description of asset.." as "Home Office" , line 2 "Date acquired..." lists the date my house was purchased in the 90's, line 3 "Date placed in service"... which was 2007, and line 4, "Enter the total cost when asset was acquired...", which lists the cost of my house in the 90's.
I guess this information was created when I first started using TurboTax and line 4 of form 8829 is the cost basis for my house. Should I have used the evaluation of my house when I first activated the house portion as a home business (8829 line 3) in 2007 or was I accurate in using the house purchase cost in the 90's? Since then, I've made numerous improvements which I learning now, I should have included as an asset? Will adding the home improvements as assets adjust my home cost basis?
