In 2020 due to county roadwork next to our business/residence property, our main driveway access
needed to be changed to another driveway access on our property. The county
refunded up personally for $11,270 and claimed the payment was "for damages" and
only stipulation that we didn't use the initial main driveway. This amount was from a
bid done on the driveways to reconstruct.
Question - my business used the funds to pay for the gravel upgrade - can I deduct this as an expense for my business?
My understanding I don't have to claim the 11,270 from the county.
Any help is greatly appreciated!
The additional information helps. Since your properties are the "business" (licensed campground) you would be justified in claiming the gravel costs as a maintenance expense. Your personal use would be incidental to the business use, the opposite of my earlier conclusion.
From personal experience with a 3/4 mile gravel driveway, additional gravel is periodically required to maintain the road's ability to handle traffic, or to handle increased traffic. This appears to be the case in your situation.
You are correct - you do not have to report the $11,270 in damages paid by the county for "taking" your main driveway access.
You cannot, however, claim a business expense for the gravel upgrade to the new main driveway access.
The new access road was required for personal use. Any work done to make it suitable for personal use would be an improvement to your property, and you cannot expense (deduct) the cost of improvements to your home. While the business may benefit from the improvement, your personal need for the new access defined the character of the expenditure as "personal".
we have 3 parcel totaling 80 acres and all 3 are classified as Resort - does this make a difference?
1.Hstded resort, NH Sgl Res 2. RV NHSTD 3. Res HMSTD, HSTDED REsort, COMM
wanted to add that although we live on the property, we are a licensed campground with some lodging and a venue rental
The additional information helps. Since your properties are the "business" (licensed campground) you would be justified in claiming the gravel costs as a maintenance expense. Your personal use would be incidental to the business use, the opposite of my earlier conclusion.
From personal experience with a 3/4 mile gravel driveway, additional gravel is periodically required to maintain the road's ability to handle traffic, or to handle increased traffic. This appears to be the case in your situation.