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rehowell3
New Member

Can I use a one time home office expense for a remodel of my home office that exceeded $2500?

The shelving, desk unit and top exceeded $6000 of the remodel.  Unable to break them down under $2500 per unit.

1 Reply
AmandaR1
New Member

Can I use a one time home office expense for a remodel of my home office that exceeded $2500?

There's no way to qualify for the de minimis exception is for assets under $2,500, if your assets costs more than $2,500. This threshold is referring to individual expenses, meaning if the shelving unit, the desk, etc., each costs less than $2,500; you qualify.  

The only exception to this rule is for business producing audited or SEC level financial statements and if you are an employee, you wouldn't qualify. In this case the threshold amount is increased to $5,000.

Regardless, you can add your home office furniture as assets, you'll see office furniture listed. You'll come to this section following the home office deduction (keep answering the questions that follow).  This is where you'll add your assets for depreciation expense. 

If you qualify the software will offer you bonus depreciation and you'll be able to deduct the full amount of the assets, instead of writing them off over the useful life as required through depreciation. This is effectively the same thing as using the de minimis exception, but you need to enter more in the forms.  

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