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caabraham
Returning Member

Can one depreciate repairs? I've spent several thousand to rebuild an asset that I use for my self-employement business

 
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DDollar
Level 7

Can one depreciate repairs? I've spent several thousand to rebuild an asset that I use for my self-employement business

No, you do not depreciate repairs, you expense them.  If you have made improvements to the asset, the you would capitalize and depreciate those costs.  But if the costs were for "repairs" then you expense them in the year you paid the expense.  But since you "rebuilt" the asset, extended the live, and made it better, I would create an asset for those rebuild costs and depreciate them.

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3 Replies
DDollar
Level 7

Can one depreciate repairs? I've spent several thousand to rebuild an asset that I use for my self-employement business

No, you do not depreciate repairs, you expense them.  If you have made improvements to the asset, the you would capitalize and depreciate those costs.  But if the costs were for "repairs" then you expense them in the year you paid the expense.  But since you "rebuilt" the asset, extended the live, and made it better, I would create an asset for those rebuild costs and depreciate them.

caabraham
Returning Member

Can one depreciate repairs? I've spent several thousand to rebuild an asset that I use for my self-employement business

So I treat it as a new asset?  It's a piano rebuild, and half the cost I paid when he started in 2016 and the other half will be in 2017.  Thanks so very much for your advice!
DDollar
Level 7

Can one depreciate repairs? I've spent several thousand to rebuild an asset that I use for my self-employement business

Yes, treat as a new asset.

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