Addition

[daycarediva]

Could use some advice Tom!

We are putting an addition on to our house. It will be partially for DC use. The entire addition is 24,995, construction is 13500, and we have to have the gas company do some work (estimate TBD). We are paying cash.

What can/should I deduct for the addition?

[TomCopeland]

home addition

Could use some advice Tom!

We are putting an addition on to our house. It will be partially for DC use. The entire addition is 24,995, construction is 13500, and we have to have the gas company do some work (estimate TBD). We are paying cash.

What can/should I deduct for the addition?

A home addition must be depreciated over 39 years. Add up all the costs, multiply by your time-space % (assuming you do use the addition for your business) and spread this over 39 years on Form 4562.