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New Member
posted Jul 30, 2023 1:29:49 PM

Where/how, may I expense or deduct the full amount of building a new detached garage for 100% business use (to store my landscaping equipment and supplies)? TIA!!

0 7 6926
7 Replies
Level 15
Jul 30, 2023 5:24:02 PM

Sorry ... a detached garage used for business  MUST be depreciated over 39 years ... it cannot simply be expensed/deducted anywhere in anyway.

 

New Member
Jul 30, 2023 6:36:39 PM

Hi, 

So how would you consider this answer that I found here on TurboTax (from an expert/alumni) while waiting for a reply to my question (it is the same situation as I have -detached garage/shed): 

 

“The other shed and the concrete do need to be depreciated as an Asset.  Since this is not a common item being depreciated, TurboTax does not have an easy category for you to use to enter the information:  You will need to enter the depreciation as follows when you have selected to enter an Asset:

  • Choose the last option on the list, Intangibles, Other Property, then click Continue.
  • On the next page titled, Tell Us a Little More, select Other asset type, then click Continue.
  • Enter the detailed information about the asset:  description, cost, date purchased or acquired.  Click Continue.
  • Continue with additional details on the next screen, then click Continue.
  • Select the appropriate Asset Class, such as 15 years which includes 'roads' then click Continue.
  • Choose the 150% Declining Balance depreciation method, then click Continue.
  • Enter 15 years as the recovery period, then click Continue.
  • Answer No to the question regarding Listed Property, then click Continue
  • Make your selection about spreading the deduction over several years, then click Continue.
  • Finally, you will see an Asset Summary screen with the current year depreciation amount listed.  There is also a check-box here to Show Details.  This will open a full description for the asset so you can verify the information that you entered.”

Level 15
Jul 31, 2023 6:11:02 AM

Since I cannot see the "building" you will have to determine if it qualifies as a 15 year property yourself ...  review the CLADR tables here : 

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

https://www.irs.gov/forms-pubs/about-form-4562

Level 15
Jul 31, 2023 9:32:41 AM

So how would you consider this answer that I found here on TurboTax (from an expert/alumni) while waiting for a reply to my question (it is the same situation as I have -detached garage/shed):

 

Without a link to the post you reference, there's no way of knowing the context of the post they answered, or the context of their answer. For the context of your post, I would consider it wrong.  For starters, it's a physical building. There's nothing "intangible" or "other property" about it.

Level 15
Jul 31, 2023 6:34:57 PM


@Carl wrote:

For starters, it's a physical building. There's nothing "intangible" or "other property" about it.


On occasion, with TurboTax, the only way to get the program to return the proper recovery period is to use Intangibles, Other Property.

New Member
Mar 10, 2024 7:46:38 AM

Hi, I'm not sure this answer is correct? Please confirm, as everything I find specifically pertains to "parking garage" having to be depreciated for 39 years, not a home business garage. When searching for detached business garage on personal property here are the responses....

- You can deduct expenses for a separate free-standing structure, such as a studio, workshop, garage, or barn, if you use it exclusively and regularly for your business. The structure does not have to be your principal place of business or a place where you meet patients, clients, or customers.

Business Use of Detached Garage…You don't have to meet clients there or make it your primary place of business to take the deduction. You do have to use it regularly and exclusively for your work. A shed you use exclusively to hold your carpentry tools is a valid write-off.

 

Expert Alumni
Mar 11, 2024 8:57:00 AM

Yes, those answers you referenced are referring to the deduction for the business space.  Which is that you can deduct all of the expenses associated with it - office expenses, utilities, etc.  

 

The questions above are referring to how long you depreciate the building in addition to those expenses.  And the answers are correct.

 

@Heather69