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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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
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
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.
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