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Returning Member
posted Jun 6, 2019 12:45:14 AM

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?

0 3 1285
1 Best answer
Level 3
Jun 6, 2019 12:45:19 AM

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. 

3 Replies
New Member
Jun 6, 2019 12:45:16 AM

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

Returning Member
Jun 6, 2019 12:45:17 AM

No.  It is for the entire house.  Thanks.

Level 3
Jun 6, 2019 12:45:19 AM

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.