Hi. My spouse runs a beauty salon as a single-member LLC from our home. The salon has a completely separate entrance and doesn't share space with our living area. In 2024 we made some improvements to meet licensing requirements and improve the space for clients, and I'm a bit unsure how to handle them for tax purposes.
We separated an area of our garage and built a bathroom specifically for salon clients. It was required for the business license but also for the clients to have a dedicated bathroom. It’s only used for business. I am a contractor so I built it myself and purchased all the materials which were around $3k. Do I need to depreciate this as a capital improvement, or is there a way to expense it?
We also renovated the salon area itself, added lighting, put in an accent wall, blinds, and even built some custom furniture. The materials were around $2k Can any of this be expensed, or does it all have to be depreciated?
I assume tools purchased during the renovations are not to be deducted, since I left it for personal use, correct?
She is running the salon from home temporarily until the business grows enough to rent a space so depreciate over a course of years would not be really beneficial.
Thank you
