legomom922 08:31 AM 04-04-2011
When figuring out the home depreiciation, am I suppose to just add the amount of money that has been spent on home improvements over the yrs to the price of the home and enter that amount under "home"? So if my home cost 80,000, and the land is valued at $15, which makes the home $65,000, do I add $10,000 on improvements to that $65000 figure so I would end up entering $75,000?? Just want to make sure I am doing this right...
TomCopeland 01:13 PM 04-04-2011
If you make a home improvement before your business begins, add the cost of the home improvement to the home and depreciate it as part of the home. If you make a home improvement after your business begins, depreciate it separately from the home.