Office in home and home improvements

[ljwalters]

Client put up-grades in her home which includes an office in home deduction. She put in a new Furnace and new energy efficient lightting ( furnace qualifies for credit cost 7,000 and lighting cost 2,964) The furnace heats the office also and some of the the lighting was in the office. Do I add this to the depreciation schedual and take the percentage? How do I get it to flow to the 8829.

[mcb39]

When filling out the 8829, you put those expenses in the "Direct Expenses" column for the home office. Leave the furnace in the "Indirect" so it gets automatically proportioned. Any improvements or repairs that are for the office alone go in the "Direct".

[jainen]

>>add this to the depreciation schedual and take the percentage<<

Hopefully your software will carry the depreciation to the 8829 and automatically calculate the percentage of use. But remember to first reduce the basis by the amount of credit.

[ljwalters]

I found it thanks everyone.