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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David E. 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. 

 

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