Business & farm

You can elect to report your improvements as expenses if your gross receipts are less than $10,000,000 and your building has a unadjusted cost basis of less than $1,000,000. If so, you can expense the cost of your improvements up to 2% of the basis of your building or $10,000, whichever is less. You will see the option to take this election when you make an asset entry on the screen that says Let's see if you can claim these improvements as expenses:

You enter the cost of the improvements as miscellaneous expenses. The tools would not be deductible unless they were purchased specifically to make the improvements.