Self employed homeowner basement remodel deduction amount?

[npjohnson]

We recently remodeled our basement. For sake of numbers lets say the basement was $50,000 and the total square footage is 1,000sq ft.  with 700sq ft of that space is for business use. 

The help files within TT say to add the remodel as a separate asset which I did.  When answering "Have you used this item 100% for this business since you acquired it?" I answered no since there is 300sq ft that is not business related.  It applied the same business use percentage as used previously. 

On the asset summary screen the total depreciation amount is $133 which seems rather low. What is the schedule of the depreciation for the asset? Can I calculate roughly what the deduction amount would be in the foreseeable future? 

Thanks

[Mike9241 · Accepted solution]

$133 is possible

home office improvements have a 39-year depreciable life

depreciable cost is 70%

you get 1/2 month's depreciation for the month placed into service + 1 full month for each subsequent month in the year

for the depreciation factor look to IRS PUB 946 based on the month placed into service

table A-7a on page 72

https://www.irs.gov/forms-pubs/about-publication-946 

the depreciation should show up on form 4562

in the future, the annual depreciation would be the pro-rata business cost divided by 39

roughly 35000/39 or $897

[npjohnson]

Thank you! This confirms I didn't incorrectly set up the asset.  I believe that the start date being in the middle of August would explain the lower deduction amount for this year based on the information you provided.