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If the space that was remodeled is used exclusively and regularly for your business, you may include the cost as a separate asset for the Home Office Deduction.
If the entire basement was remodeled and a portion was for your Home Office, you will need to allocate the cost to the square footage of your home office. Then add the allocated cost as a separate asset for the home office deduction.
If the space that was remodeled is used exclusively and regularly for your business, you may include the cost as a separate asset for the Home Office Deduction.
If the entire basement was remodeled and a portion was for your Home Office, you will need to allocate the cost to the square footage of your home office. Then add the allocated cost as a separate asset for the home office deduction.
I have the TT download for Windows.
Can I deduct the expense for a new office in my home instead of depreciating the asset?
It depends. There is a Safe Harbor DeMinimis deduction however it may not be available for you. The information below will allow you to determine if your home office fits the criteria.
Improvements Election
This election is an option you can take each year that lets you write off some building improvements as expenses instead of assets.
Here are the rules you need to meet to take this election:
This election for building improvements is called the Safe Harbor Election for Small Taxpayers. If you decide to take this option, a form called Safe Harbor Election for Small Taxpayers will show up in your tax return. This election will apply to all your businesses, rental properties or farms.
Here is what taxpayers need to know about the home office deduction. This link will help you determine if you meet the qualifications to deduct a home office.
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