New barn to be used for farm activities

[dmeekga]

We built a new barn on our property last year, 1/2 of which is to be used for my wife's existing flower farm business that she's been running out of the house. I am familiar with listing business expenses based on home office use, and assume we can do that for the ongoing expenses. But I am not sure how or if the construction cost should be shown on my taxes. I realize I should have figured this out when we built it, but here we are. Thanks

[RobertB4444 · Accepted solution]

You should add up all of the construction costs and figure out what you paid for the whole building.  Then enter it into TurboTax as new business property with a 50% business use.  All the expenses become 50% deductible except for any direct expenses (such as buying flower seeds, etc.) that are directly attributable to the flower business.  And you'll depreciate the half of the barn she's using.

@dmeekga