Building An Addition To Our Home....Questions?

[melskids]

i would love to have more DC space, so we are thinking of putting up an addition to the house.

my question is this....

because of the unique set up of our house, we would actually be building the addition for a new master bedroom. the current master bedroom is attached to the DC room, and would be turned into additional DC space. would building the new master bedroom be deductible, seeing it is technically going to be our bedroom, even though we would be giving up the current bedroom for DC? Because of where the DC room is now, i can't build an addition directly off of that, and don't want to have to COMPLETELY rearrange the WHOLE house. Because of the layout, (inside and the outside play space) it just would'nt work any other way.

TIA

[Michael]

I am trying to find the question in this thread. ::

[melskids]

i know...i'm horrible at explaining myself in written word....

the addition would be for a master bedroom.

the current master bedroom would be turned into daycare space.

can i still write off the cost of the addition, even though technically it is for a master bedroom, seeing that i will give up the master bedroom i have now for daycare space?

does that make more sense? ::

[TomCopeland]

Bedroom Addition

If you didn't use the new bedroom addition on a regular basis for your business then you couldn't deduct any of its cost. However, if you had day care children sleep in their regularly, or if you used it for business purposes (desk, computer, toy storage, etc. where you did business activities regularly) then you could count the time-space percentage of the cost.

[Blackcat31]

i know...i'm horrible at explaining myself in written word....

the addition would be for a master bedroom.

the current master bedroom would be turned into daycare space.

can i still write off the cost of the addition, even though technically it is for a master bedroom, seeing that i will give up the master bedroom i have now for daycare space?

does that make more sense? ::

What if the new addition is built for daycare use, (and you get to write it off) but then half way through the year you decide to switch up the rooms and then use the new addition as the master bedroom because it just wasn't working out as a daycare space? Just getting creative! Seeing if it is worth a shot.....

[TomCopeland]

Home Addition

A home addition, like any other expense, would only be deductible in your business based on how it was used, not why it was purchased. Creative - yes. Practical - no.

[Unregistered]

Another question on Home Additions

I own a duplex and one side is used 100% for daycare. It is, however, a rather small space and I am thinking of building an addition onto it. Is the total cost of the addition a tax write off? It seems that it should be since it will be used 100% for daycare and would not be built if the business did not exist, but seeing that the cost will be made in payments, and that it does add to the value of our home, I am not entirely certain. Any input would be greatly appreciated!

[TomCopeland]

duplex

Adding an addition that will be used 100% for your business is 100% deductible. You must depreciate it over 39 years as a home improvement.