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

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Rhonda was a Seasonal Tax Return Reviewer at TaxAudit before joining the permanent staff as an Audit Representative in 2009. She has a Bachelor of Science in Computer Science and worked in the Information Technology field for 15 years before making a career change. Since transitioning to the field of income tax in 2003, she has prepared and analyzed hundreds of tax returns. Rhonda enjoys helping taxpayers and tax professionals learn and understand the fascinating world of income taxes. Currently, she is the Learning and Development Manager.


 

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