Wood Flooring Home Office Depreciation

[antiquedolls]

I put wood flooring in my home office ONLY.  The cost of the flooring was 1700.00.  I am doing the labor myself.  When I went to add the flooring as a business home office asset, it figured depreciation at 13.00!  I am curious why it would be this low?  Shouldn't it depreciate the entire 1700.00?  At 13.00 a year, it is only depreciating 390.00. 

HELP.

Vicki

[Coleen3]

Some home office expenses are indirectly related, meaning they apply to the entire house and must be prorated. Usually electricity is one of these expenses. If you have proof that the expense is separated and applies strictly to the business, you can take the entire amount as a direct expense.

You may be limited because you can't create a loss with a home office expense.

[antiquedolls]

TurboTax asked if it was home office only. I selected yes. So don’t understand why only 13.00 a year.

[Coleen3]

Go to Forms and look at the home office worksheet.
To switch to Forms Mode, open your return, and then click the Forms icon in the upper left corner of your screen (or choose Go to Forms from the View menu at top).
The Federal Information Worksheet will display and all the forms in your return will be listed on the left side. Simply click a form to open it.
To switch back to the interview, click the EasyStep icon in the upper left corner, or choose Go to EasyStep from the View menu.

[antiquedolls]

I looked at the form.  It is showing 13.00 for 39 years.  That amounts to:  507.00 if at 13.00 a year.  It shows that 1700.00 is the amount to be depreciated.  Why is it only calculating 13.00?

[Coleen3]

What was your profit before that depreciation amount? Did it bring you to zero?

[antiquedolls]

No, I am still showing a profit of 3500.00.

[Coleen3]

It might be time to have a phone agent remote in to look at it. TurboTax CD/Download software
1. Click or tap here to go to our Contact us page.
2. Select your product (CD/Download Mac or CD/Download Windows), your edition (Basic, Deluxe, etc.), ask your question, then select Continue.
3. On the following screen, enter your contact info, then select Get the phone number.
The above is the best and most efficient way for you to connect with the right person so that you can get the help you need. But if you still require assistance, you can contact us on (800) 446-8848.