AnnetteB
Intuit Alumni

Deductions & credits

If your shop and your house are considered to be a single property if you were to sell and they were both purchased together, then you should combine the square footage and take the 2700 square feet as business property since it is 100% used for business. 

If the shop was built separately at a later time, then you should only consider the cost of building the shop as an asset that is depreciated for your business.

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