Shareholder/employee remodels a mother-in-law home for office and storage of inventory.  No mother in law lives in the home. It is just a secondary building on the shareholder's homesite. The Patio was remodeled to close it in and create another room for storage. The S corp paid the expenses directly to Home Depot and contractor.

1.Can the S corp expense these costs?

2.If not, can the  S corp capitalize and depreciate the costs? However, the Shareholder has legal title to the property.

3.Or does the shareholder have to submit a reimbursement request for depreciation and the S corp records the cost over 39 years ? . 

4. Any other on-point suggestions ?