If it broke, then replacing the broken part with the same part would be a repair. If replaced with an upgrade to provide additional power it would be an repair plus an improvement. What it would have cost to just replace the broken breaker can probably be subtracted from the cost of the improvement and deducted as a repair. The remainder would be an improvement added to the cost basis of the property. That is my opinion anyway.
I look at it the same way as if the home office space was not big enough for the inventory so it bulged out a wall in the home and broke a stud. Repairing the broken stud would be a repair. Expanding the office space by added an addition to the home to make it bigger would be a home improvement regardless of what the additional space would be used for or the reason for adding it.
**Disclaimer: This post is for discussion purposes only and is NOT tax advice. The author takes no responsibility for the accuracy of any information in this post.**
