Vanessa A
Expert Alumni

Deductions & credits

It sounds like you now have a spot that is completely for your business separated from the rest of your personal stuff and use.  If so, then the $7,500 addition would be a building asset and would be depreciated.

 

 The key is regular use for storage and exclusive and regular use for the home office.  You can enter this as a home office and walk through the steps to take the deduction. 

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