topic Capital Improvements on Home PRIOR to Having a Home Office in Business & farm

Capital Improvements on Home PRIOR to Having a Home Office

ScottT18 — Thu, 23 Jan 2025 22:00:06 GMT

As the title would allude, I began a business in my home this past year and have owned the home for a decade prior. I did a search and found this post (https://ttlc.intuit.com/community/tax-credits-deductions/discussion/a-couple-questions-if-we-refinanced-our-home-mult[product key removed]-to-establishing-a-home-office-do/01/280943#M34136) that kinda answered my question in that I do include the prior capital improvements. Would I

Include them in the initial screen "Cost of your entire home" even though the dates of those improvements are different than when I purchased the house, or
Enter the house cost basis (less land) then add the improvements as additional assets categorized as improvements for the entire house? (screenshot is of this way in case I am not using my words correctly!)

Thanks!

Re: Capital Improvements on Home PRIOR to Having a Home Office

ThomasM125 — Fri, 24 Jan 2025 01:35:46 GMT

You should add the improvements to the cost of the house and enter that sum as the basis of the house. You should not enter them individually. Your enter the date you started using your home for business as the beginning date for depreciation on the home.

Re: Capital Improvements on Home PRIOR to Having a Home Office

ScottT18 — Fri, 24 Jan 2025 01:40:59 GMT

Great, thank you for clarifying that @ThomasM125 ! Going forward, if I do any capital improvements, I add them as I was doing previously?

Re: Capital Improvements on Home PRIOR to Having a Home Office

LeticiaF1 — Sun, 26 Jan 2025 19:22:57 GMT

Yes, any future capital improvements can be added as you were doing previously.

@ScottT18

Re: Capital Improvements on Home PRIOR to Having a Home Office

ScottT18 — Mon, 27 Jan 2025 18:39:21 GMT

Amazing thank you so much for confirming that @LeticiaF1