Question

Where to enter Whole house generator on TurboTax

Forum|Forum|1 year ago
October 14, 2024
1 reply
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I am self employed and have a home office. I had a whole house generator installed and I am wondering if it should be added under depreciation as an improvement. I saw another post saying you cannot use it as a large purchase under the sales tax section.

DoninGA

Employee

It is an improvement to the home so is added to the basis of the home.

Sales taxes paid on the generator are not deductible since it is not one of the items available as a Major Purchase.

Major purchases include:
- Vehicles
- Off-road vehicles

If the sales tax paid on the following items was the same as your general sales tax rate, you can also include:
- Aircraft
- Boats
- Mobile homes
- Manufactured housing
- Building materials for major home improvements

G

gatorlisa04 Author

Thank you for your reply.

I am finishing up my 2023 taxes because I filed for an extension. I had it installed in 2023.

Do I enter it under the section called Depreciating Your Home? I do a schedule C and just finished entering my home office expenses and business expenses. Is it worth depreciating since the cost was over $20,000?

Does this mean I have to enter it every year from now until I sell my house? I have no plans of selling my house in the near future.

DoninGA

Employee

Since it is an improvement it increases the basis of your home. So in the section for Depreciation for the Home Office you should add the cost of the generator.