The answers to your questions are in the order you placed them.
- Enter a new asset for your business as the separate structure - do not enter it in the home office section.
- Interest paid on the separate structure, if it is 100% business use, is deducted in full as interest expense on your business Schedule C.
- If you have any utilities or other expenses that are not separated by home and office then use the square feet of the office divided by the total square feet of the combined residence and office to arrive at the business use percentage of those expenses. Enter them directly on the Schedule C or in the Home Office section.
@jswolfgramm1119
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