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Repair and maintenance deductions

Our small family business owns three homes. These homes are not for producing any income, meaning there is no rent involved.

Are repair and maintenance costs considered a business expense since our business owns the homes?

Or does the fact that they are not for the purpose of earning any income mean that our business would be just like a regular home owner, who would not be allowed to expense repair and maintenance costs?

Thank you.

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4 Replies

Repair and maintenance deductions

what type of family business  - partnership/llc, S-Corp, C-corp?   what is the purpose of the business owning the homes? is any attempt being made to rent them?

 

 

 

 

Repair and maintenance deductions

Just because you own a business, does not make all your life expenses "business expenses."  Business expenses are those that are "ordinary and necessary" for the type of business you are running.  Without more details, we can't help you decide if the expenses of these empty houses are "ordinary and necessary" to the running of the business, but it does not seem promising.  You may want to provide more information.  

Carl
Level 15

Repair and maintenance deductions

Our small family business owns three homes. These homes are not for producing any income, meaning there is no rent involved.

Why does the business own homes that are not used for the production of income or any other business purpose? Based on the information provided (or lack thereof) there doesn't appear to be any purpose for the business to own the properties. Just because the property is owned by a business does not make it a business deduction or even a business asset for that matter.

What type of business is it? multi-member LLC? S-Corp? Partnership? Something else? Why does the business exist? (i.e.; what does the business do to produce income?)

 

TomD8
Level 15

Repair and maintenance deductions

You may find this web reference of some use:

Tax Information on Expenses Related to Non-Rental Investment Income (zacks.com)

**Answers are correct to the best of my ability but do not constitute tax or legal advice.
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