Repair to business utility trailer

[conniehoward0570]

I have a utility trailer that is used for my business 100%. I had damage to the tow bars on the trailer and had them repaired. Would this expense be deducted under repairs and maintenance, as a de-minimis safe harbor,  or a capitalized improvement, or something else entirely?

[MonikaK1]

From your description, this sounds like a repair to your business property. 

Don't add to your basis (or enter as a new asset) costs you can deduct as current expenses. For example, amounts paid for incidental repairs or maintenance that are deductible as business expenses can't be added to basis. 

See IRS Publication 551 for more information.

[conniehoward0570]

So, do I just include the amount on the maintenance and repairs line?

[TomK2023]

Yes, add the utility trailer repair expense on your Schedule C, Line 21 - Repairs and maintenance.  See image below.

Enter your Income & Expenses on Schedule C:

1. Open or continue your return.
2. Navigate to the Schedule C section:
   • TurboTax Online/Mobile: Go to Schedule C.
   • TurboTax Desktop: Search for Schedule C and select the Jump to link.
3. Answer Yes to Did you have any self-employment income or expenses? and answer the questions until you get the Select any expense categories you have screen.
4. Select your expenses, then Continue.
   • If you've already worked in this section, select Edit or Review next to your business.
5. Then select Start or Edit next to an expense type that you had.
6. Enter your expense description and amount, and follow the onscreen instructions.

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