Capital Improvements on Home PRIOR to Having a Home Office

Forum|Forum|1 year ago
January 23, 2025
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As the title would allude, I began a business in my home this past year and have owned the home for a decade prior. I did a search and found this post (https://ttlc.intuit.com/community/tax-credits-deductions/discussion/a-couple-questions-if-we-refinanced-our-home-mult[product key removed]-to-establishing-a-home-office-do/01/280943#M34136) that kinda answered my question in that I do include the prior capital improvements. Would I

Include them in the initial screen "Cost of your entire home" even though the dates of those improvements are different than when I purchased the house, or
Enter the house cost basis (less land) then add the improvements as additional assets categorized as improvements for the entire house? (screenshot is of this way in case I am not using my words correctly!)

Thanks!

TurboTax Home & Biz Windows

Best answer by ThomasM125

You should add the improvements to the cost of the house and enter that sum as the basis of the house. You should not enter them individually. Your enter the date you started using your home for business as the beginning date for depreciation on the home.