Inspect the area where you plan to install the soffit to be sure no additional blocking is needed prior to the drywall installation. If the joists run the same direction as the soffit, blocking is needed. In this case, place 2-by-4-inch blocking every 16 inches, and attach it with framing nails.
Hang drywall to add a fire barrier between the ceiling and the wall where the soffit will be installed. Because it will be covered by the soffit, no plaster finish is required.
Build two small L-shaped frames for the soffit by using the 2-by-4-inch board, circular saw and a pair of saw horses. Cut six pieces to the desired height. Attach the vertical pieces to the horizontal length using framing nails. This will create a small wall.
Add end caps if the length of the soffit does not butt against the adjoining walls. Measure the outside opening ends with a tape measure, and cut two pieces of 1/4-inch plywood to size. Use framing nails to attach the end caps.
Cover the soffit frame with 1/2-inch drywall by using drywall screws and an electric screwdriver. All the drywall edges should be sanded smooth.
Paint the wall of the new soffit, and allow adequate drying time.
Install the soffit. You will need assistance to hold the completed soffit in place. Nail it to the wall studs and ceiling joists. Use a measuring square to make sure the soffit lines up correctly.