Although you did not incur contractor costs, your capital improvement cost includes all the materials, supplies and tools needed for the project. You are entitled to the depreciate the costs incurred. You do not get credit for your "labor".
Capital improvements are business expenses incurred that have a useful life of more than one year, such as roof replacement. Because the improvement is considered a capital asset, you must recover the cost of the item by depreciating the expense over the item’s useful life. Each tax filing year, you will include a depreciation expense amount for the capital improvement until the point at which you have recovered the entire cost of the item on your federal income tax return.
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