Re: Three Tips from Two Accountants Who Know How to Manage Expenses
What if you repair machinery and you need a building added to your property to work on the equipment. Is the building, Tools, and power deductible?
or would it be better to rent a garage down the road?
Power is always an expense
If you buy a building or build one that is a fixed asset and not an expense
If you rent a building, that is rent expense
Tool puchase depends on the cost, high dollar long life tools are usually fixed assets and subject to depreciation. In the US, currently a tool that costs over $2,500 must be a fixed asset. Less than that de minimus amount, it is an option.