Where to enter Whole house generator on TurboTax

[gatorlisa04]

I am self employed and have a home office. I had a whole house generator installed and I am wondering if it should be added under depreciation as an improvement.  I saw another post saying you cannot use it as a large purchase under the sales tax section.  

[DoninGA]

It is an improvement to the home so is added to the basis of the home.

Sales taxes paid on the generator are not deductible since it is not one of the items available as a Major Purchase.

Major purchases include:
- Vehicles
- Off-road vehicles

If the sales tax paid on the following items was the same as your general sales tax rate, you can also include:
- Aircraft
- Boats
- Mobile homes
- Manufactured housing
- Building materials for major home improvements

[gatorlisa04]

Thank you for your reply.  

I am finishing up my 2023 taxes because I filed for an extension.  I had it installed in 2023.  

Do I enter it under the section called Depreciating Your Home?  I do a schedule C and just finished entering my home office expenses and business expenses.  Is it worth depreciating since the cost was over $20,000?

Does this mean I have to enter it every year from now until I sell my house?  I have no plans of selling my house in the near future.  

[DoninGA]

Since it is an improvement it increases the basis of your home.  So in the section for Depreciation for the Home Office you should add the cost of the generator.

[Opus 17]

For the home office deduction, you should be asked to identify if an improvement is specific to the office or for the whole house.  If it is a whole house improvement (which this is) then you depreciate a percentage of the cost equal to the percentage of the home office. The rest of the cost adds to the general cost basis of the house, and you should keep track because that will reduce your capital gains whenever you sell the house. 

[gatorlisa04]

I just entered it and it is showing it was applied to business use percentage.  Is that correct?

I do have a home office, but the generator is for the entire home.  Do I need to take it out of that section and move it to another section?  I assume I am only getting a tax deduction because I have a home office.  Is this correct?