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Re: Three Tips from Two Accountants Who Know How to Manage Expenses

@David_Murray wrote:

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.

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