Business Asset

Forum|Forum|3 years ago
April 20, 2023
2 replies
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I started a business in 2022. I built a building on my property for 100% business use for my woodworking business. Can I expense it all this year or do I need to depreciate over time?

TurboTax Home & Biz Windows

Best answer by Anonymous_

@mackyd wrote:

I built a building on my property for 100% business use for my woodworking business. Can I expense it all this year or do I need to depreciate over time?

You are going to have to depreciate the building as an asset over time. Specifically, the building would be nonresidential real estate which has a recovery period of 39 years.

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Anonymous_Answer

Employee

@mackyd wrote:

I built a building on my property for 100% business use for my woodworking business. Can I expense it all this year or do I need to depreciate over time?

You are going to have to depreciate the building as an asset over time. Specifically, the building would be nonresidential real estate which has a recovery period of 39 years.

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Anonymous_

Employee

You might also want to consult with a local tax professional and/or legal counsel as there may be more beneficial ways to structure the real estate expense (and expenditures) in conjunction with your business.