Assets or expenses?

magill22 — Sat, 01 Jun 2019 20:22:37 GMT

I own and operate a business out of my home and have been using Turbo Tax home and business software for taxes. In 2018 I had a portion of the home re-sided. I also had an old deck torn off and re-built. How should these costs be treated for tax purposes? they total almost $18,000.00 Should the be treated as assets or expense deductions?

The residing and deck rebuilding are assets and not expen...

Leonard — Sat, 01 Jun 2019 20:22:38 GMT

The residing and deck rebuilding are assets and not expenses.

The residing of your home and rebuilding the deck are capital improvements that are added to the adjusted cost basis of your home. A capital improvement is the addition of a permanent structural change or the restoration of some aspect of a property that will either enhance the property's overall value, increase its useful life or adapt it to new uses.

topic Assets or expenses? in Deductions & credits

Assets or expenses?

The residing and deck rebuilding are assets and not expen...