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mswoolstrum
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

I paid off sewer from mandatory hook up last year as Millcreek Township made this mandatory for all the people on my road as we all had septic systems.  It was a large expense and I am trying to capture this somewhere. Please let me know and how or where to do this. thanks.

1 Best answer

Accepted Solutions
DS30
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

Yes but you would only be able to add this expense to the cost basis on your home as a capital improvement. You would then be able to take an additional depreciation deduction on this capital improvement as part of your home office expense (but only your home office proportionate share).

Qualifying for the home office deduction is hard to do for an employee. In addition to satisfying the ordinary requirements for the home office deduction and you must meet the convenience of the employer test.

Convenience of Employer Test

  • Your business use must be for the convenience of your employer, and
  • You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

For any home office to be deductible, you must (1) use a part of your home regularly and exclusively for work, and (2) your home office must be your principal workplace or you must regularly perform administrative or management tasks there. Whether you work at home or are an employee, you will need to satisfy these basic requirements to claim a home office deduction.

The Home Office Deduction is a job-related expense subject to the 2% AGI limitation and is only available as a deduction if you itemize on your tax return.

To enter your Home Office expenses as a job-related travel expense in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Employment Expenses”
  5. Choose "show more", then Job-related expenses and follow the onscreen instructions          
  • Say "yes" to question "Did you have any of these expenses in 2015 for your W-2 income?" under the screen titled "Employment Expenses Related to a W-2".
  • A few screens in, you will get to a screen titled "Home Office Expense", you can put for home office expenses here (screenshot)

 


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4 Replies
DS30
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

Yes but you would only be able to add this expense to the cost basis on your home as a capital improvement. You would then be able to take an additional depreciation deduction on this capital improvement as part of your home office expense (but only your home office proportionate share).

Qualifying for the home office deduction is hard to do for an employee. In addition to satisfying the ordinary requirements for the home office deduction and you must meet the convenience of the employer test.

Convenience of Employer Test

  • Your business use must be for the convenience of your employer, and
  • You must not rent any part of your home to your employer and use the rented portion to perform services as an employee for that employer.

If the use of the home office is merely appropriate and helpful, you cannot deduct expenses for the business use of your home.

For any home office to be deductible, you must (1) use a part of your home regularly and exclusively for work, and (2) your home office must be your principal workplace or you must regularly perform administrative or management tasks there. Whether you work at home or are an employee, you will need to satisfy these basic requirements to claim a home office deduction.

The Home Office Deduction is a job-related expense subject to the 2% AGI limitation and is only available as a deduction if you itemize on your tax return.

To enter your Home Office expenses as a job-related travel expense in TurboTax Online or Desktop, please follow these steps:

  1. Once you are in your tax return, click on the “Federal Taxes” tab
  2. Next click on “Deductions & Credits”
  3. Next click on "jump to full list" or “I’ll choose what I work on”
  4. Scroll down the screen until to come to the section “Employment Expenses”
  5. Choose "show more", then Job-related expenses and follow the onscreen instructions          
  • Say "yes" to question "Did you have any of these expenses in 2015 for your W-2 income?" under the screen titled "Employment Expenses Related to a W-2".
  • A few screens in, you will get to a screen titled "Home Office Expense", you can put for home office expenses here (screenshot)

 


View solution in original post

mswoolstrum
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

where do I enter this depreciation deduction in turbo tax and put it in the correct area for tax submission?
DS30
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

Are you taking a home office deduction as an employee or self-employed?
mswoolstrum
New Member

Can I claim the $15,000 for mandatory hook up fee for new sewer installation from last year to replace a septic system/tank previously, as I work at home 100% time?

I am an employee of Aetna HealthCare - I do not even see where I can choose either employee or self employed though
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