How JustAnswer Works:
  • Ask an Expert
    Experts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional Answer
    Via email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction Guarantee
    Rate the answer you receive.
Ask emc011075 Your Own Question
emc011075, Tax adviser
Category: Tax
Satisfied Customers: 3120
Experience:  IRS licensed Enrolled Agent and tax instructor
Type Your Tax Question Here...
emc011075 is online now
A new question is answered every 9 seconds

My wife and I are starting a home based cooking business and

Customer Question

My wife and I are starting a home based cooking business and in order to be successful we will need to make some improvements in our Kitchen so my wife can be more efficient and productive in her cake making. My question is will we be able to deduct the
cost of these improvements from our taxes?
Submitted: 2 years ago.
Category: Tax
Expert:  emc011075 replied 2 years ago.
Hi. My name is ***** ***** I will be happy to help you.
You would not be able to deduct the improvements in one year, you would have to depreciate it over 39 year and only if the kitchen will be used "exclusively" for the business. To qualify for business use of home tax deduction, part of the home has to be used "regularly" and "exclusively" for the business activity. That's IRS rule.
You can read more about it here:
I am sorry if that's not the answer you were hopping for.
I see you offline now. So if this answered your question, please take a moment to rate my response so that I may receive credit for assisting you today. However, if you need clarification, or want to discuss this issue further, let me know. Thank you.
Customer: replied 2 years ago.
So if we also cook family meals in the same kitchen then we would not be able to deduct any of the cost of improvements?
Expert:  emc011075 replied 2 years ago.
That's correct. If you use the kitchen to cook family meals, you would not meet the exclusivity test and the improvements would be considered personal, therefore not deductible. Those improvements will be added to the basis of your home and you will be able to deduct them when you sale your home.
If you build a separate kitchen that will be used for business only, than you would be able to deduct percentage of utilities, mortgage interest, property taxes and other expenses associated with running your home, plus you would be able to depreciate the kitchen over period of time.