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Tax deductible building repairs.

al4alexal4alex subscriber Posts: 1
edited February 2009 in Business Planning

Last year we leased an old warehouse for our future children`s museum. Our agreement with the owners was that we paid a symbolic $10 lease and $ 20000 for necessary repairs to the structure.After that our lease will be $ 24000 per year. Is there any way to deduct our $ 20000 investment from income tax? Thanks.
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Comments

  • MattThomasMattThomas subscriber Posts: 2
    Agreed 100% with Mark. If it is a business expense, I don`t see any reason why you couldn`t use this as a deduction.
    The way I have learned it is that as long as you can justify that the expense was for business purposes, it is a business expense.
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  • davebarnes04davebarnes04 subscriber Posts: 0
    Hey Al4alex,
    My wife and I just did the same sort of thing with our business. We just file our taxes, so I get this straight from my accountant. Yes it`s deductable as a biz expense and is known as a "Leasehold Improvement".
    Good luck on the Museum. If you get your website going let me know. I can set you up with a revenue stream as an affiliate on one of my sites: http://www.ScienceMuseumGifts.com
     
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