Converted my two car garage into a commercial kitchen

Forum|Forum|4 years ago
March 30, 2022
2 replies
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We converted our two car garage on our property into a commercial kitchen, so we don't have to pay rent anymore and have more space and storage.

Where do I list all the expenses?
Do I list it as an asset?

TurboTax Business Windows

ThomasM125

By "commercial kitchen" I assume you mean you are charging other people to use the kitchen, that is they are paying you rent to use the kitchen.

If so, then you would set up a rental property in TurboTax and deduct the associated expenses as rental expenses. You would enter this in the Federal section of TurboTax, then Income & Expenses, then Rental Properties and Royalties (Sch E). In that section you will see options to enter assets and expenses that are ordinary and necessary for the generation of your rental income.

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mlcoleAuthor

I am not renting the kitchen out to anyone. I produce a product that requires a commercial kitchen to process.

JohnB5677

I see you have the Business software, and I expect that you're posting an 1120-S. The renovation and purchase of equipment will be considered Assets, and be depreciated over time.

The garage itself may qualify under the "Home Office" guidelines. Topic No. 509 Business Use of Home. You can then take a portion of the RE taxes, Mortgage Interest, and general expenses.

You will then record your income and operating expenses.

If this doesn't cover your entire question please reach out for additional assistance on any specific issues.

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fbatroni

Would it be possible to pick your brain on this? I am looking to do this exact thing!