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New barn to be used for farm activities

Forum|Forum|3 years ago
April 3, 2023
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We built a new barn on our property last year, 1/2 of which is to be used for my wife's existing flower farm business that she's been running out of the house. I am familiar with listing business expenses based on home office use, and assume we can do that for the ongoing expenses. But I am not sure how or if the construction cost should be shown on my taxes. I realize I should have figured this out when we built it, but here we are. Thanks

Best answer by RobertB4444

You should add up all of the construction costs and figure out what you paid for the whole building. Then enter it into TurboTax as new business property with a 50% business use. All the expenses become 50% deductible except for any direct expenses (such as buying flower seeds, etc.) that are directly attributable to the flower business. And you'll depreciate the half of the barn she's using.

@dmeekga

R

RobertB4444Answer

You should add up all of the construction costs and figure out what you paid for the whole building. Then enter it into TurboTax as new business property with a 50% business use. All the expenses become 50% deductible except for any direct expenses (such as buying flower seeds, etc.) that are directly attributable to the flower business. And you'll depreciate the half of the barn she's using.

@dmeekga

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