You have a depreciable asset with your new building and can only depreciate it. To do so:
- Return to the business section
- Edit
- Select Business Assets
- Large purchases, yes
- $2500 or less, select no for this entry, continue
- improvements, no
- describe, Real Estate Property
- drop down box, enter date building was completed for use
- Tell us more, select Nonresidential real estate
- Tell us about large purchase, describe, art studio
- cost $15,000
- land 0, continue
- Select I purchased this asset and yes for 100% business - unless you do use if for personal purposes as well, then select no.
- drop down for when you started using, continue
- This year's depreciation will show and you can click the show details box.
Your office building has a 39 year life over which to depreciate. For more information see Pub 946 which states:
Nonresidential real property. This is section 1250 property, such as an office building, store, or warehouse, that is neither residential rental property nor property with a class life of less than 27.5 years.
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