I purchased a tiny building for my LLC last year. Where to I report what I spent on it?

[Ashby]

You would report it under Expenses>Assets. How much did you pay for the building and what's its use?

[bond007123]

Thank you! It's an 800sq foot classroom, freestanding, business usage only.

[bond007123]

I spent 29K for the down...is that considered an expense?

[bond007123]

Thank you again. That's exactly what i needed to know! 🙂

[Ashby · Accepted solution]

So, you would enter it under Expenses>Assets.

But, what you have (even though tiny) is a commercial building. You can't expense the cost. You have to depreciate it over 39 years for the full cost. So, it's the total purchase price with a 39 year life. You have deprecation each year for a portion of it.