Yes, add the finished basement as another Business Asset for your Home Office. Allocate the total renovation costs based on the square footage you're using as an office. That amount is the basis for this asset.
Depending on the total cost, you may be able to take full depreciation this year, ie: write off the entire cost of the Home Office portion of the renovation. Look for questions regarding Safe Harbor, Section 179, or special depreciation. In effect, this would be the same as reporting the cost as a Home Office repair expense.
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