It depends. If you use this space regularly and exclusively for your business, you can claim a Home Office Deduction for either your actual expenses or the standard rate of $5 per square foot ($1500 max). Using Actual Expenses does allow you to claim depreciation on the building.
Or you can report the construction cost for your half as a Business Asset for depreciation (commercial building) and also claim your related expenses. But you can't do both.
If the business owns the building, claiming it as a business asset is the more logical choice. But if you personally own the building, the Home Office deduction is more appropriate.
It is not an intangible, since it has a physical presence.
For more help, see:
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
