Home Office Deduction for add-on?

What is the name of your state? Texas

Hi, We have home business and used a room for an office. We have a 4 total rooms in the house, and everything was great while we had just 2 kids (1 bedroom for us, 1 for each kid, 1 for the office).. We had another baby and turned the office into a bedroom. So we just completed an add-on to our house that has a room and a bathroom and a storage closet. We have moved all our computers and home business items to this new addition. My questions are:

Can we deduct the total cost of the add-on to our house as a home office deduction? How would we do it, would it be under a Sec 179 deduction?

Can we deduct the cost of the new desk, chairs we put in the new add-on?

Thanks!

[abezon]

You'll need to depreciate the addition. You can deduct the furnishings, subject to the usual income & other limitations.

Can the depreciation be taken up to the limit of the sec 179 in the 1st year?

[abezon]

No. You're stuck with straight line 39 year.