Self employed - Down payment on building one year, completed and final payment the next year....

[TxTm]

Self employed - Down payment on building one year, completed and final payment the next year.... How do I enter this on 2022 & 2023 taxes?

Thanks!

• Self employed - Down payment on building one year, completed and final payment the next year....
• Self employed - Down payment on building one year, completed and final payment the next year....Self employed - Down payment on building one year, completed and final payment the next year....Self employed - Down payment on building one year, completed and final payment the next year....

[Vanessa A]

What kind of building is it?

Most buildings cannot be expensed, you would need to depreciate the building over 39 years if it is a commercial building and 27.5 years if it is a residential building.  

To enter the building for your business, you will enter it as an asset.  You can do this by selecting the following:

• Business
• Business Income and Expenses
• Start/Edit or Update next to your business
• Scroll down to Business Assets and click start
• Click through until you are asked to describe the asset, and select real estate property.  
• Continue through answering all of the questions about the property.  

Since the down payment was made in 2022, and final payment in 2023, if you did not actually put the property in use until 2023 after the final payment, you would not enter this on your 2022 taxes.  You would wait until your 2023 taxes to enter this building as an assets.  You begin depreciation when the building is placed into service. 

[TxTm]

Storage warehouse. Thanks so much!