topic Depreciation in Business & farm

Depreciation

stewart-2019 — Wed, 12 Feb 2025 15:01:16 GMT

I am an independent contractor. I just had a main shut off value installed. I was told that I can deduct the cost on form 8829. Does this have to be depreciated or can I take the safe harbor rule

Re: Depreciation

KrisD15 — Wed, 12 Feb 2025 15:17:09 GMT

To clarify, was this a repair on your home and you also claim a home office?

What method do you use for the home office, Actual/Regular or Simplified ?

Re: Depreciation

stewart-2019 — Wed, 12 Feb 2025 16:05:43 GMT

I take the home office tax deduction and I use the actual expenses

Re: Depreciation

AmeliesUncle — Wed, 12 Feb 2025 22:19:50 GMT

Is this a water turn-off? Is using water part of your business or home office?

Re: Depreciation

stewart-2019 — Wed, 12 Feb 2025 22:29:17 GMT

It is the main shut off value to the entire house

Re: Depreciation

stewart-2019 — Wed, 12 Feb 2025 22:30:43 GMT

Yes I am an independent contractor and I take the home office tax deduction

Re: Depreciation

PatriciaV — Thu, 13 Feb 2025 14:58:56 GMT

Yes, you can claim this home improvement as an additional asset for depreciation on your Home Office deduction. The Safe Harbor Election is not available for this asset because your home is not used 100% for your business. The depreciation expense you can claim is based on the percentage of business use that you entered for the Home Office.

Since this is part of your residence, the recovery period is 39 years on a straight-line basis. This means the portion of the cost allocated to the Home Office will be divided by 39 and the same amount will be reported each year.

@stewart-2019