You will enter this as an asset for your business. To do this in TurboTax Online please follow these steps:
- Within your tax return use the magnifying glass icon to search for Schedule C
- Click the Jump to link
- Click Edit for the line of work
- Scroll down and click Add expenses for this work
- Scroll to and click Add for Assets - if you don't see it on the list, scroll down to the Less Common section and click the down arrow and show more until you do
- Click Continue
- Click Start for Assets
- You will treat the whole cost of building the workshop as the asset so answer No to Did you buy any items for any business, rental property and/or farm that cost $2,500 or less in 2021?
- You will also choose No to Did you make improvements to a building you used for this business in 2021?
- Choose Real Estate Property to Describe the Asset
- The date purchased will be the date you started using the workshop for your business and then click Continue
- Choose Nonresidential real estate and Continue
- Name your asset - Workshop works!- and enter the total cost of buying the base structure and all the purchases to complete the building
- Leave the land cost blank since this is still your personal property
- Choose I purchased this asset new and Yes, I've always used this asset 100% for business
- Enter the date your business started (which is the date of purchase) and click Continue
TurboTax calculates the depreciation and enters it on your Schedule C for you.
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