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Subject Author Date
Home office: Depreciate or expense improvements HW \"Skip\" Weldon 12-20-2006
Posted by HW \"Skip\" Weldon on December 20, 2006, 9:52 pm
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 Sole proprietor (SP) maintains office in home, files Sched C
and Form 8829 (among others). On the 8829 he uses 15% as
the business use percentage for indirect expenses.

During '06 improvements to home include both backyard deck
and kitchen repair/remodeling. As indirect expense on 8829,
may SP expense the entire appropriate amount (15%) or must
he depreciate?

-HW "Skip" Weldon
Columbia, SC

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Posted by Harlan Lunsford on December 22, 2006, 1:34 am
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 HW "Skip" Weldon wrote:

> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
>
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?

I don't see where these "improvements" have anything to do
with the home office space, hence I would disregard them.

Now when my client up in Chicago made improvements just to
his basement which happened to entirely be his home office,
then yes, I did add these to cost of property for
depreciation purposes.

Holiday ChEAr$,
Harlan Lunsford, EA n LA

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by Arthur Kamlet on December 22, 2006, 1:34 am
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> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
>
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?

Since you posted here, you know you don't want to hear the
answer. SInce the improvements constitute a capital asset,
he gets 39 years to expense them.

__
Art Kamlet ArtKamlet @ AOL.com Columbus OH K2PZH

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

Posted by doshan@scicable.com on December 22, 2006, 1:34 am
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HW "Skip" Weldon wrote:

> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
>
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?

My understanding is that you would do nothing with the above
mentioned repairs / improvements as they have no connection
to the office in home at all. Once you have started
claiming office in home expenses you can only deduct or
depreciate repair / improvement expenses directly related to
the office such as a new rug for that area or whatever. Any
major improvement to the whole home such as a new roof
(which would also affect the office) would be depreciated.

<< ======================================================= >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2006) - All rights reserved. >>
<< ======================================================= >>

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