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Converting second home that’s free and clear to an home where clients can stay for up to 24 hours whom don’t reside in the area at no charge. Are the renovations and repairs to the home tax deductible on schedule C since it’s for business purposes
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Is client's presence needed for Taxpayer's business?
Of course, it has to be a reasonably necessary expense intended to generate a profit.
If Taxpayer is artist and a subject comes to stay, housing of subject can be deductible
I have a hard time seeing business purpose for a Tax Preparer to have clients in residence
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These are Two Different Things: renovations and repairs
I teach it like this:
Replacing a broken window is Repairs Expense.
Replacing all of the windows with new, is Improvement to the Asset and not expense.
Then, Whether you can Accelerate that as an expense write off or not, falls under the tax regulations that apply.
You should be able to better understand this as "still invested in the property and having a significant useful life" = Not expense.
Hope that helps.
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