Flooring and furniture costs for home-office, in the books and on tax reports

[NS1]

Hello! I am trying to figure out how to account for and then report the cost of new home-office flooring and furniture.

We are a 2-member LLC filing with Form 1065 Partnerships Tax Return, and then we file a "married filing jointly" personal tax return, where we can claim home office deductions by using the Business Use Of Home worksheet.

We got a house last year where the first level is exclusively dedicated to being a home office. We purchased vinyl flooring material for it with our business card and the roughly $3500 expense shows in our accounting software. Can I mark this expense as a depreciated asset (because it is an improvement), and then claim section 179 to write off the full amount as a business expense for last year? Or should this expense be marked as an owner investment/drawing to eliminate it from the business expenses in the books, and then included as "Repair and Maintenance" or "Other Expenses" in the Business Use Of Home worksheet that goes with the personal tex reports?

Would then the same treatment apply to the office furniture, namely a few desks, chairs, and large storage cabinets?

[RobertB4444 · Accepted solution]

The flooring/home improvement is an asset.  You should enter it as such and then take the 179 accelerated depreciation deduction if that is what you choose.  The furniture and equipment can be entered the same way.  

Since these are direct business expenses and not expenses to add to the entire home you can take them this way.

@NS1 

[NS1]

This is great to know! Thank you so much! @RobertB4444