Kitchen Remodel

[LittleExplorers]

How do we deal with a very large upgrade? We just gutted and re-did our whole kitchen. I need to add up all the receipts. What about tools that were purchased for the project specifically like arts to hold up the cabinets for install and the floor nailer? We did all the labor yourself so the tools were needed.

[Michael]

Here are other threads on deductions for remodeling: https://www.daycare.com/forum/tags.p...tion+-+remodel

[TomCopeland]

Originally Posted by LittleExplorers

How do we deal with a very large upgrade? We just gutted and re-did our whole kitchen. I need to add up all the receipts. What about tools that were purchased for the project specifically like arts to hold up the cabinets for install and the floor nailer? We did all the labor yourself so the tools were needed.

If the total cost (not counting tools) was more than $2,500 you need to treat this as a home improvement and depreciate it over 39 years. Deduct your time-space% of the tools separately in one year.

[LittleExplorers]

Originally Posted by TomCopeland

If the total cost (not counting tools) was more than $2,500 you need to treat this as a home improvement and depreciate it over 39 years. Deduct your time-space% of the tools separately in one year.

Thank you!

[TomCopeland]

Originally Posted by michael321

If the total price (without tool count) is $ 1,000 for Kitchen Remodeling more than 39 years and you need separate treatment. One year after a year.

Since the cost is less than $2,500 you can deduct the business portion in one year on Schedule C. Call it a repair.