I am Self Employed and built a new studio on my parents property, it is exclusively for my business and is separate from the house. Where do I enter this expense?

It would be similar to renovating my work space, but is a new space. I have not used the usual home office deduction as my parents have allowed me to use the space for free, but I did pay to build my new studio outside the house on my own. I would like to deduct this from my business expenses.

679

Expert Alumni

Jun 3, 2019 4:29:10 PM

You could set up the new studio as a Business Asset and deduct the amount you spent to build it either as an Expense or Depreciate it over several years.

Additionally, you can deduct Home Office Expenses (such as mortgage interest, property tax, insurance, etc.) in proportion to the entire home, even though yours is a separate structure.

For example, if your studio is 500 square feet, and the house is 1500 square feet, you can deduct 33% of those costs that would apply.

Here's more detailed info:

https://turbotax.intuit.com/tax-tips/small-business-taxes/managing-assets/L18WqppFX

Why sign in to the Community?

I am Self Employed and built a new studio on my parents property, it is exclusively for my business and is separate from the house. Where do I enter this expense?