Spent last year building a detached workshop on my property exclusively for my new home based business. I got a loan for the base structure which I make monthly payments on and paid out of pocket for all the other building materials (Home Depot and Lowes) which were needed to complete the shop. I'm trying to figure out exactly how and where I should be inputting these costs. I had significant expenditures last year to complete the shop which wasn't done until November and therefore the new business had very, very little income. Any help is greatly appreciated.
You will enter this as an asset for your business. To do this in TurboTax Online please follow these steps:
TurboTax calculates the depreciation and enters it on your Schedule C for you.
Awesome! Thank you so much. One last question. Do I include finance charges in the total cost of the base structure since I financed it over 5 years?
The finance charges would be deducted as an annual expense for the business Schedule C as interest.
We have a detached workshop and our accountant is refusing to deduct it on our 2021 tax filing (this is a new accountant to us). We use the workshop for storage of supplies and actual work. What article can I point out to this accountant to help convince her that this is a legitimate tax deduction?
Small Business and Self-Employed Tax Center has everything you could ever want including Expenses, Business which of course covers Business Assets. You may want to do your own taxes since you know more than the accountant.