Hi Margaret,
A previous question I posted directed me to your post. I have yet to file my 2018 return, as I am still tring to sort out a few things.
My wife and I have owned a hair salon for several years. We had been considering expanding the business to offer spa services. In 2018, the unit next door to us in a strip mall became available. We leased the unit and had it completely remodeled. It is not a separate business. In fact, the front door stays locked and all clients enter throught the salon to get to the spa.
Is this expansion classified in the manner your post mentions? And if so, are the remodeling/"bid out" costs the only costs included. Or are costs such as massage tables, furniture, decorations, and supplies all lumped into this one "Real Estate Property" asset? After rereading your post, I realize these items do not add permanent value, so Im guessing they are deducted as regular business expenses.
If you would confirm this for me, I would greatly appreciate it!
