turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
turbotax icon
cancel
Showing results for 
Search instead for 
Did you mean: 
Announcements
Ask the Experts All About the W-4! >> Event happening NOW!!!
Close icon
Do you have a TurboTax Online account?

We'll help you get started or pick up where you left off.

NS1
Level 3

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

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?

Connect with an expert
x
Do you have an Intuit account?

Do you have an Intuit account?

You'll need to sign in or create an account to connect with an expert.

1 Best answer

Accepted Solutions
RobertB4444
Expert Alumni

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

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 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

View solution in original post

2 Replies
RobertB4444
Expert Alumni

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

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 

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
NS1
Level 3

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

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

message box icon

Get more help

Ask questions and learn more about your taxes and finances.

Post your Question
Manage cookies