In 2009 I set up a room in my home as a recording studio.
Cost to remodel the studio was 10K (sound proofing, acoustic treatment etc)
The studio is attached to the house but can only be accessed from the outside.
(ie, modified guest house, mother in law room etc)

I used to have a commercial studio and have always used Schedule C and 4562 for any construction costs.

Does this studio remodel go on
- 4562 line 19i (didn't make enough this year to qualify for a meaningful 192 ded)
or
- 8829 - what line? how do I deduct the full 10K?

thank you.

Since you use your portion of the Studio in your principal residence exclusively for business purposes, you would definitely qualify to depreciate the cost to remodel the studio as an "additional improvement" and these expenses would be taken on Form 4562.

When you depreciate the improvements over the applicable MACRS period, (generally S/L Mid Month Convention over 39 Years) the resulting depreciation should flow through to Form 4562 Part III-MACRS Depreciation on line 17.

__________________
Find a CPA near you!

Ask TaxGuru Please refer to the legal disclaimer.