We replaced 9 of the windows throughout our home for energy efficient windows. I am self-employed and have a home office, where 3 of these windows are located.
a) Can I deduct the expense of replacing the 3 particular home office windows as a direct home office expense, given they are located in my HO? The cost of replacing the 3 windows is 1.2% of the purchase price (and .7% of the actual home price).
b) Or, should I deduct the expense of replacing the 9 windows as a home office expense that benefits the entire home? The cost of replacing all 9 windows is 4.4% of the purchase price of our home (or 2.6% of the actual price of our home, per city assessments).
c) Or, are these expenses considered an improvement?
Thank you!
