We have a Self employment business, it all remote, we are currently using 30 SF and we need more space. T here is a old shed that seperate from the house. it about 96 sf. It needs work to make it useable for office, new drywall, replace old siding, adding electric system, Heating/AC system.
Facts as we understand it: if we wrong please corrected us.
- The cost will be 100 percent direct cost.
- Internet and electric will be shared so we will need to divide per Sf add 96 sf on top of the total house and claim 96 SF portion.
here what we don't understand or can't figure out.
- do we write off the direct cost of remodel the shed on one tax return or do we have to deprecate it over years? we expect the cost to be around 4-8k.
- do we still take the $5 per sf deduction for home office or no because it a separated building?
