Calculating Home Office Deduction for Repair - Payments Financed

[PCMarmot]

I had a large plumbing repair completed in early 2020, and payments were financed at 0% over 12 months. For the purposes of calculating the home office deduction, do I enter the full amount for the repair or only those payments that were made within the time period that the home office was in use?

[ColeenD3]

You will need to prorate not only according to the space of the office vs the space of the home but also for the time the space was  an office.

[PCMarmot]

@ColeenD3 right, I understand that, but I need to know whether I should prorate only the monthly installments paid during the period that the home office was in use or the full cost of the repair on the date it was incurred. The total invoice was approximately $11k, however I spread those payments out over 12 months. The complication is that I converted my business from a sole prop to an LLC/S Corp in May, so I need to know whether to attribute the full cost of the repair (prorated for home office use, of course) from the time it was incurred or split it between the sole prop and the S Corp depended on when those payments were made, if that makes sense. 

[ColeenD3 · Accepted solution]

I am assuming you paid by credit card. Whenever the charge was made, that is when it was considered to be paid. It doesn't matter how long it takes to pay off the credit card.

[PCMarmot]

@ColeenD3 ok perfect, that's what I needed to know. I did pay by line-of-credit (Greensky), so this answers the question.