I have been using a room in my home as an office for the last four years (the time I have lived in my home). It is a dedicated office and I take a percentage of my utility bills and maintenance as a deduction.
I am moving my office to an out building (about 50 feet from my home) that was built before our home. The space that I will be using was finished four years ago but I have recently installed a mini split and a few other upgrades so I can use it as my office.
Here are my questions:
1. For 2025, can I claim what it cost to finish the space four years ago?
2. Am I correct that I can claim the 2025 upgrades (mini split, etc)?
3. Would this separate space be considered a home office or something else?
4. If something else, what are the differences in a home office and this space? Where could I find that information?
