Before the end of the year, we want to build a well house. The well pump is buried in the property that we bought.
Do you know how it is deductible?
I also have a home-based business
2007-10-09 17:12:34 · 3 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ United States
No. The expense would be categorized as a home improvement and could not be classified as a business expense.
2007-10-09 17:22:23 · answer #1 · answered by STEVE P 4 · 0⤊ 0⤋
If it's your personal residence, no, although the cost of the well house can probably be added to your basis, and would reduce capital gains tax when you sell the house, if you owe any tax. Replacing the pump wouldn't be deductible and wouldn't add to your basis either.
If it's property that you are renting out, then yes.
2007-10-10 01:47:08 · answer #2 · answered by Judy 7 · 1⤊ 0⤋
No, this isn't a deductible expense, even if a person had a home office. Some expenses, we just have to absorb.
2007-10-10 00:58:43 · answer #3 · answered by Peggy K 5 · 0⤊ 0⤋