Tax Question On Tools Purchased To Repair A Rental Property
Newbie landlord just purchased a rental Victorian house with 3 units toward the end of last year and is doing the tax returns with TaxTurbo Premier. I purchased some power tools to do repairs by myself. Shall I deduct them as expenses or depreciate them? I sometimes use them for repair work of my primary home. Shall I allocate a certain percentage for deduction/depreciation related to the rental property?
Thanks!
I would right them off, I spend 10K a year on tools and my accountant has no problem with writing them off directly.
Randall
Oh my! You want to depreciate a $150.00 saw for 7 years? Write it all off in the first year. I can't quote you the amount that you are allowed to write off, but it used to be $10,000 for some reason I think it is way higher than that now.
As for a percentage, who is going to know that you sneak it home on the weekends and cut a few 2x4's just for the fun of it. If you can write it off 100 percent as business use then do it. There are not that many ways that you get to be benefited by the tax code so take advantage of them when you can.
Those sneakers you wear to the rental when you were painting the kitchen, you really wear them all the time in your personal life, but you didn't get to write off a percentage of them that you used during your painting. See what I mean, if you can write off the tools do it, there are plenty of things that don't go in your favor when it comes to taxes.
Thank you guys! This is such a great place. I'm so glad I found it today.