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Old 12-22-2006, 05:34 AM
doshan@scicable.com
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Default Re: Home office: Depreciate or expense improvements

HW "Skip" Weldon wrote:

- quote -

> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?


My understanding is that you would do nothing with the above
mentioned repairs / improvements as they have no connection
to the office in home at all. Once you have started
claiming office in home expenses you can only deduct or
depreciate repair / improvement expenses directly related to
the office such as a new rug for that area or whatever. Any
major improvement to the whole home such as a new roof
(which would also affect the office) would be depreciated.

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #1  
Old 12-22-2006, 05:34 AM
Arthur Kamlet
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Default Re: Home office: Depreciate or expense improvements

HW \"Skip\" Weldon <skip5700removethis[at]hotmail.com> wrote:

- quote -

> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?


Since you posted here, you know you don't want to hear the
answer. SInce the improvements constitute a capital asset,
he gets 39 years to expense them.

__
Art Kamlet ArtKamlet [at] AOL.com Columbus OH K2PZH

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 
Old 12-22-2006, 05:34 AM
Harlan Lunsford
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Posts: n/a
Default Re: Home office: Depreciate or expense improvements

HW "Skip" Weldon wrote:

- quote -

> Sole proprietor (SP) maintains office in home, files Sched C
> and Form 8829 (among others). On the 8829 he uses 15% as
> the business use percentage for indirect expenses.
> During '06 improvements to home include both backyard deck
> and kitchen repair/remodeling. As indirect expense on 8829,
> may SP expense the entire appropriate amount (15%) or must
> he depreciate?


I don't see where these "improvements" have anything to do
with the home office space, hence I would disregard them.

Now when my client up in Chicago made improvements just to
his basement which happened to entirely be his home office,
then yes, I did add these to cost of property for
depreciation purposes.

Holiday ChEAr$,
Harlan Lunsford, EA n LA

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
  #-1  
Old 12-21-2006, 01:52 AM
HW \Skip\ Weldon
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Posts: n/a
Default Home office: Depreciate or expense improvements

Sole proprietor (SP) maintains office in home, files Sched C
and Form 8829 (among others). On the 8829 he uses 15% as
the business use percentage for indirect expenses.

During '06 improvements to home include both backyard deck
and kitchen repair/remodeling. As indirect expense on 8829,
may SP expense the entire appropriate amount (15%) or must
he depreciate?

-HW "Skip" Weldon
Columbia, SC

<< ================================================== ===== > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >
 

Tags
depreciate, expense, home, improvements, office
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