Entering a building repair as a business asset to depreciate

[Sakana]

I have a building repair, $9k, for my home office that I want to add as an asset to depreciate over time. I do not see this as an option in the assets section of Turbo Tax. In the home office section it says to enter big repairs in the assets section so you can depreciate them. But in the asset section there is not option for this kind of asset.

Where do we enter this

[SabrinaD2]

To enter a building repair as a business asset for depreciation in TurboTax, follow these steps:

1. Sign in to TurboTax
2. To enter your rental improvements, simply follow the directions to enter your rental income and expenses. 
3. At some point you'll come across the Here's [your property's] rental property info screen. Under Expenses / Assets (Depreciation), select Add expense or asset and follow the onscreen instructions. We'll figure out which depreciation method works best in your favor.

[Sakana]

This is not a rental property. This is a home office, it just happens to be a separate building on our property.

[Vanessa A]

What type of repair was it? Is the home office for a business or for a job as an employee?  If it is for a job as an employee or personal use, it is not deductible.  

If this is a qualified home office for a business, then you would enter it in the business section as an asset.  To get there, go to your business profile and select edit.  Then select Business Assets. 
 

Since this is a home office in a separate building you will say you made improvements to a building you used for this business. 

 Where do I enter my self-employment business expenses, like home office, vehicle mileage, and suppli...

[Sakana]

This is used as a home office only for a business.

We were not able to find where you can enter this in the program. Under assets there is know option for a building repair. There is landscaping improvements, there are technology options like computers or copy machines, there is options for something else, but not for repairs or upgrades. 

We saw repairs upgrades in expenses, that you are showing, but those do not seem to be depreciable.

[jrogers6167]

I have the same question.  I've made improvements to a building used strictly for business.  The building is already being depreciated.  Per the IRS (copied below right from the IRS), I can depreciate these improvements because it added value to the asset.  Which one of the 3 options in Turbo Tax do you select under Business Assets (Computer, Video, Photo, etc / Tools, Machinery, Equipment / Intangibles, Other Property)?  I would assume Intangibles, Other Property.  If that is the case, would I then choose Land Improvements or Other Property?

Thanks!

From IRS:

How Do You Treat Repairs and
Improvements?
If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the
property, or adapts it to a new or different use. See section
1.263(a)-3 of the regulations.
You generally deduct the cost of repairing business
property in the same way as any other business expense.
However, if the cost is for a betterment to the property, to
restore the property, or to adapt the property to a new or
different use, you must treat it as an improvement and depreciate it.
Example. You repair a small section on one corner of
the roof of a rental house. You deduct the cost of the repair
as a rental expense. However, if you completely replace
the roof, the new roof is an improvement because it is a restoration of the building. You depreciate the cost of the
new roof.
Improvements to rented property. You can depreciate
permanent improvements you make to business property
you rent from someone else.

[PatriciaV · Accepted solution]

Improvements to a building used for your home office are added as a Home Office Improvement that is depreciated over the same period as the related building (usually 39 years). 

1. Open your return, go to your business, and Start/Update the Home Office Expenses topic.
2. Edit the home office you need to work on.
3. Continue through the interview to the Home Office Asset Summary page.
4. Add an Asset and check the box for "An improvement to your home."
5. Enter a description, cost, and date the improvement was ready to be used.
6. If this was an improvement only for the home office, check the "Yes" box under "Have you used this item 100% for this business..."
7. Confirm the Business Use Percentage.
8. Continue to the end of this topic.

@Sakana 

@jrogers6167 

[jrogers6167]

This is a separate building owned by the LLC (not a home office).  Knowing that, is the process you stated above still the same?

[PatriciaV]

If this is a business building and not a home office, the general entry process is similar. The improvement is still entered as a business asset using the same asset type as the related building (nonresidential real estate property).

However, you may be able to write off these costs if you qualify for the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election under the Assets/Depreciation section of your business. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated over a very long time.

@jrogers6167 

[Sakana]

Thank you, this was the answer that worked. For some reason when I was entering items in this section I miss interpreted what the add asset button here was for. It read to me like just adding another office or something so I never clicked it.

Thank you again.