A friend who is a homebuilder has two buildings on his residential property. He operates as a sole-proprietor and has a disregarded-entity LLC for his business, filing a Schedule C. One of the buildings is used as a garage for his vehicles and the other is used for business purposes - storing his tools, trailers, etc. During 2022, he improved the building that is used for business purposes by insulating, drywalling, replacing the garage door with an insulated door, adding an electric heater, and upgrading the electrical panel so that the building is now usable year around for construction projects, such as building cabinets, shelving, etc. in addition to the aforementioned storage use.
Can he expense the costs of these improvements on his Schedule C for 2022? Thank you for your help!
