Home Office deduction

[StruggleWithACA]

This question is for 2019 income tax return.

I had a home office in my apartment. I had repair work done to block noises from the outside. It was both for my personal purpose and for work (no background noise during conference calls).

There are two separate deductions in TurboTax. One for home repair deduction; the other for home office deduction.

Shall I enter the repair expenses as a home repair deduction OR home office deduction?

Also since I only worked at home 2 days per week. Shall I enter 40% of the repair cost instead of the full cost?

Would appreciate your input!

[AnnetteB6 · Accepted solution]

If all of the work was done in the home office space, enter it as a home office repair.  All of the cost of the repair will be included as a home office expense, which will then be limited by the percent of time that you use the home office.  You do not need to prorate it yourself.

If work was done in the home office and your personal space, then enter the total cost as a home repair.  A portion of the cost will be attributed to the home office based on the ratio of home office square feet to the total home square feet.  That home office amount will then be limited further based on the percent of time of home office use. 

[wpb]

I am confused about where to enter the repairs for my home.  I use one room for an office and have taken deductions for repairs in the selection of turbo for repair to the home and turbo would take a percentage of the repair as an deduction.  2019 turbo tax has an addition section for home repair.  I don't want to enter this information twice.  The repair was done for the entire house not just for space.  Where do I enter this information?

[MayaD]

You should enter the repair expenses as an expense that applies to the whole house and turbo tax will calculate the amount that can be deducted as office expense.

1. Log in to your account.
2. Go to Federal Taxes.
3. Go to Income and Expenses.
4. Go to Self Employment Income.
5. Select your line of work.
6. Scroll down to Expenses and select home office.
7. Continue to the screen Expenses for XXX home office, scroll down and select No, all of XXX expenses apply to the entire home.
8. Continue to the screen Enter repair expenses, enter the expenses.

[cppi1303]

what if the home office only repair was a $15000 repair to replace an exterior door that is for access to that home office

[AnnetteB6]

If the exterior door only provides access to your home office, then the cost would be attributed to the home office only.  However, you need to consider whether the cost was truly a 'repair' or an 'improvement'.  A 'repair' keeps the component in efficient operating condition.  An 'improvement' enhances the value of the property or adapts it to a different use.  

If it was an improvement, then it should be depreciated as an Asset and not deducted as an expense.

@cppi1303

[wpb]

I have a home office and the 2020 turbo is asking me for home office, home improvement.  I am really confused.  Is the any improvements made to the office area only or the entire home?  I don't want to deduct the amounts twice. All improvements were made to the entire home.  The 2020 turbo is more complicated than other years.

[DavidD66]

If you did renovations that were made to the entire home, you would increase the cost basis of your house by that amount.  That's all you would need to enter.  A portion of it will be reflected in your depreciation, according to the square footage percentage of your office.  If you did renovations specific to your home office, such as having built in bookshelves added, you would enter it as an improvement made only to your office area. 

[wpb]

I am self employed and received a 1099 NEC form.  I also get Social Security Benefits and in 2020 I received some PUA benefits.  In years past, I did not have to pay taxes on my Social  Security benefits but 2020 Turbo says I pay some on that income.  Can you tell me why this years only?  Is it because of the PUA benefits I received?

[DawnC]

Yes, it is most likely due to the Form 1099 you received and the PUA benefits that exceeded $10,200.    

Whether or not your Social Security income is taxable depends on your total income, including your Social Security plus any other income. Generally speaking, if your only income is Social Security, you probably don't make enough money to be required to file a federal tax return.

For those with additional sources of income, the key figure is the Modified Adjusted Gross Income (MAGI). The MAGI includes half of your Social Security, plus other sources of income. Once your MAGI exceeds the base amount for your filing status ($32,000 for Married Filing Jointly, otherwise $25,000), at least part of your Social Security income becomes taxable. The taxable portion of your Social Security income increases once you reach additional MAGI thresholds.

Is My Social Security Taxable? TurboTax Tax Tip Video  @wpb  The video further explains how the taxable portion is calculated and it is under 2 minutes in length.  

[wpb]

This helped, thanks for posting the link, I could not find this info on the web page myself.

[WYLDEFLEUR]

I AGREE ABOUT THE NEWER VERSION VS ORIGINAL VERSIONS BEING MORE COMPLICATED AND CONFUSING.