Shed as home office

Forum|Forum|4 years ago
April 24, 2022
2 replies
19 views

Just making sure I’m thinking about this correctly. Taxpayer bought a shed through llc, it’s on a slab, has electricity, correct treatment is to depreciate over 39 years - it’s not permitted or a listed improvement for taxes - 39 years seems right but crazy long given nature of the asset.

anyone else have the same situation? How did you handle?

ProSeries Professional

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Best answer by TaxGuyBill

Assuming it is not easily removed, you have it correct. There is nothing else to "handle".

T

TaxGuyBillAnswer

Level 15

Assuming it is not easily removed, you have it correct. There is nothing else to "handle".

J

jw-rogersAuthor

Level 3

@TaxGuyBill this is what gets me, what if they move, they can take it. It’s not completely permanent and a 39-year value doesn’t match the likely economic use. Oye the she shed.

T

TaxGuyBill

Level 15

if they move, they can take it. It’s not completely permanent

and a 39-year value doesn’t match the likely economic use.

You know much more about what the structure than I do, but generally if it is on a slab and has electricity, that is fairly permanent. As I said in my original comment, if it is not easily removable, it is 39 years.

The Recovery Period for tax depreciation doesn't necessarily align with economic use.