Solved: For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?
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For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?

This question is specific to the cost of a new water heater that cost $885 that I want to enter as a home office expense.  Can i enter this as an expense somewhere or do i have to treat it as an asset and take depreciation?

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Level 3

For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?

The replacement of a water heater would be a depreciable asset but you can choose to expense it.  Since it is only $885, depreciating it would result in a very very small benefit.

You would enter the water heater cost in the Home Office section under Repair Expenses 

To do this click the following

  • Business
  • I'll Choose what I work on
  • Update next to Business Income and Expenses
  • Edit next to your business
  • Start next to Home Office Expense under Business Expenses
  • Walk through all the questions until you come to the Repair Expense question.  
  • You may not see this question if you are choosing the simplified method.  You will see it if you are taking the actual expense method. 
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**Mark the post that answers your question by clicking on "Mark as Best Answer"

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3 Replies
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New Member

For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?

The water heater would not just be used for the home office, would it?
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New Member

For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?

No.  It is for the entire house.  Thanks.
Highlighted
Level 3

For home office expenses/deductions, where and how to I enter the cost of a new water heater that cost $885?

The replacement of a water heater would be a depreciable asset but you can choose to expense it.  Since it is only $885, depreciating it would result in a very very small benefit.

You would enter the water heater cost in the Home Office section under Repair Expenses 

To do this click the following

  • Business
  • I'll Choose what I work on
  • Update next to Business Income and Expenses
  • Edit next to your business
  • Start next to Home Office Expense under Business Expenses
  • Walk through all the questions until you come to the Repair Expense question.  
  • You may not see this question if you are choosing the simplified method.  You will see it if you are taking the actual expense method. 
**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

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