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When setting cost basis for Home Depreciation, do you also add various improvements made to the house previous to the in home office creation? Exmp. floors, cabinets,roof

Since the house was bought I've spent 150k on improvements. For the office itself I have spent 3k to build the room.
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PatriciaV
Expert Alumni

When setting cost basis for Home Depreciation, do you also add various improvements made to the house previous to the in home office creation? Exmp. floors, cabinets,roof

Yes, you should include improvements and home-office-specific expenditures when setting up your Home Office Deduction.

Your home and any improvements (that increase its fair market value) are entered separately as Home Office Assets. See screenshot #1 below of the Home Asset Summary page (click to enlarge).

The renovations specific to the home office are also entered as a separate asset (be sure to check the box to indicate this asset is limited to the home office - screenshot #2).

For more help, look for the blue links throughout the Home Office Deduction section.

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