Deduction for materials when adding an office to a workshop on my property?

Forum|Forum|2 years ago
March 28, 2024
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I have a large workshop at my house that I use for contract work + personal use (woodshop + working on cars). For work I use it to make things I need for work + store my work gear (video production).

in 2023, I spent ~$7500 building an addition onto the workshop thats used for storage + a dedicated office (storage to clear up floor space, dedicated office so I could get out of the house and focus)

I did all the work myself, those are all materials costs. The workshop has never been listed as a business asset, its was a building on a the property when we bought our house, and over the years, I've updated it and renovated the interior for general use. This 2023 work was the only time I did anything to it specifically for my contract work.

What, if anything, can I deduct?

Best answer by Vanessa A

It sounds like you now have a spot that is completely for your business separated from the rest of your personal stuff and use. If so, then the $7,500 addition would be a building asset and would be depreciated.

The key is regular use for storage and exclusive and regular use for the home office. You can enter this as a home office and walk through the steps to take the deduction.

Vanessa AAnswer

The key is regular use for storage and exclusive and regular use for the home office. You can enter this as a home office and walk through the steps to take the deduction.

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