Is construction equipment deductible?

March, 12 2014 by Dave Du Val, EA
Partially painted room

Hey Dave,

I was an owner contractor on the restoration of my house. I bought some used construction equipment to do the work, items like gas powered pressure washer and electric power airless paint sprayer. Since I bought these items used do I need to show them as fixed assets or can I expense them?

Sincerely,

Patrick

 

Hi Patrick,

We are assuming, based on your question, that the remodel is on your personal residence. Since these items may be used for other purposes after the remodel, they should not be included in your restoration expenses. It would be different for an item such as an attached cabinet which would be added to the cost basis of your home and would later help offset any gain when you sell the home.

Deductibly Yours,

Dave Du Val

Want peace of mind?

Learn About Prepaid Audit Defense

CATEGORIES
View All Articles
TaxAudit Blog Home
Submit a Question
 
Dave Du Val, EA

Dave Du Val, EA
Chief Compliance Officer for TRI Holdco

 
Dave Du Val, EA, is Chief Compliance Officer for TRI Holdco. Inc., the parent company of TaxAudit, and Centenal Tax Group. A nationally recognized speaker and educator, Dave is well known for his high energy and dynamic presentation style. He is a frequent and popular guest speaker for the California Society of Tax Consultants, the California Society of Enrolled Agents and the National Association of Tax Professionals. Dave frequently contributes tax tips and information to news publications, including US News and World Report, USA Today, and CPA Practice Advisor. Dave is an Enrolled Agent who has prepared thousands of returns during his career and has trained and mentored hundreds of tax professionals. He is a member of the National Association of Tax Professionals, the National Association of Enrolled Agents and the California Society of Enrolled Agents. Dave also holds a Master of Arts in Education and has been educating people since 1972. 
 

Recent Articles

The IRS may determine your business is a hobby, limiting what you can deduct as expenses. This is particularly true if the activity consistently loses money.
Learn More ›
Yes, car insurance can be tax deductible for self-employed taxpayers, Armed Forces reservists, qualified performing artists, and some government officials.
Learn More ›
PMI, funding fees, and guarantee fees can be deductible if you qualify. One qualification is your mortgage loan must have been taken out between 2007 and 2021.
Learn More ›
A tax lien occurs when the IRS makes a legal claim to your property to settle a tax debt. There are options if you can't pay the total amount or disagree.
Learn More ›
This blog does not provide legal, financial, accounting, or tax advice. The content on this blog is “as is” and carries no warranties. TaxAudit does not warrant or guarantee the accuracy, reliability, and completeness of the content of this blog. Content may become out of date as tax laws change. TaxAudit may, but has no obligation to monitor or respond to comments.