How to deduct business home office furniture

[dave-e-hudson]

Turbo tax asks me if I want to take the new annual election instead of depreciating.  I say yes.  I would have thought it would ask me to enter the expenses (office furniture that I bought), but it kicks me out to the main screen.  Where do I enter this office furniture if I don't do the depreciation approach?

[PatriciaV · Accepted solution]

Yes, after taking the Safe Harbor Election, you need to enter the cost of those assets under Business Expenses (see instructions below). Choose a category that seems appropriate, or continue to the page for miscellaneous expenses to enter your own description (see screenshot below - click to enlarge).

Note: Home Office Furniture costing over $500 is generally reported as a fixed asset for depreciation in the home office section of TurboTax. However, the IRS approved a "Safe Harbor Election" that allows small businesses to expense assets that each cost $2,500 or less. When you make this election, it applies to your entire return, not just your home office. After making this election, the assets are entered under Business Expenses rather than Assets for Depreciation.

Expenses and Assets for your Home Office are entered from the expenses summary screen under the section where you report the home office: self-employed business (Schedule C) or job-related expenses (Form 2106). To find this section, search on the form name then work through the screens until you come to the expenses summary with the Home Office topic.

Or you can go to My Account >> Tools >> Topic Search and enter "home office deduction" then choose the subtopic for your expenses. Click on the link to go to the start of that section.

[revised; SHE info added 1/27/17]

[dr-nmayeda1]

I've read other places that Safe Harbor elections need to be categorized in the Other Miscellaneous Expenses section (vs. choosing a category within Business Expenses) - can you please verify? Thank you.

[PatriciaV]

You may choose whatever category applies. If enter under "Other Miscellaneous Expenses" you have the option to include "Safe Harbor Election" or "SHE" to the description.