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I have a home office. I run a business solely out of my home office.
In 2005, we did some renovations to my home office and I'm wondering if I can deduct those expenses for the renovations? - mainly we redid the flooring. It wouldn't be a lot but would help if we could expense the cost of the materials.
Anyone know?
I think you can. If you have turbo tax or tax cut program it will tell you for sure about home office deductions.
I don't. :(Quote:
Originally Posted by Craftlady
I just have a "tax guy" LOL
Guess I should just call him, huh?
I usually wait until the 1st of March to go in and get mine done. (I have to send in my Corp. taxes by March 15th so that's really pushing it!) But at least the the lines aren't as long! And gives me time to get things in order.
I don't procrastinate at all . . .
:rolleyes:
Mz Gini should be able to answer this one as she has a home office. Gini???
Check out http://www.irs.gov/
I did a keyword search on home office and came up with quite a list of helpful articles: home office
I was interested myself so I looked at Publication 535 for Business Expenses. It says: Capital Expenses
You must capitalize, rather than deduct, some costs. These costs are a part of your investment in your business and are called “capital expenses.” Capital expenses are considered assets in your business. There are, in general, three types of costs you capitalize.
Business start-up costs.
Business assets.
Improvements.
Improvements
The costs of making improvements to a business asset are capital expenses if the improvements add to the value of the asset, appreciably lengthen the time you can use it, or adapt it to a different use. Improvements are generally major expenditures. Some examples are: new electric wiring, a new roof, a new floor, new plumbing, bricking up windows to strengthen a wall, and lighting improvements.
Now what the heck capitalization is compared to deduction is too much for my brain. But, I'm sure the answer is on the IRS website somewhere.