Somewhat unusual deduction perhaps?

[mblatour]

Jesse- the work shop that is needed for the small contractor/construction business is for owner use only. He does not have any employees. He does subcontract occasionally. Clients do not come to his home, he goes to them.

[JohnH]

I can certainly see the wisdom of having a Boss V-Plow here in the NC piedmont. Why, I remember one time back in 1998 when I could have really used one of those things. We had a HUGE snowfall and it took almost a whole day for the stuff to melt away...

[JG EA]

And what tax theory are you basing that opinion on? Surely you understand the concept of depreciating an asset that is not used 100% for business.

I see no problem depreciating the business percentage of equipment used for business. The only issue is you have to use straight line if the business percentage is 50% or less.

Well, the way I was looking at it was in the OIH way. The home is not owned by the business - the home is owned personally. The IRS allows certain things in the running of a home office to be taken on a tax return. Outside equipment can be owned by the business but may have no connection with the OIH. For instance a tool used in the taxpayer's business. And of course could be depreciated.

So, I'd say if one viewed the snow plow as used by the business then it should go on the Sch C and not on 8829.

I was looking at the snow plow as owned personally like a lawnmover (or since lawn care is not allowed in OIH let me use the example of a trash can). Since a % of trash removal is allowed what about the trash can? I would say that is a personal asset and % of the trash can should not go on 8829.

I've had a little experience with personal assets not being allowed depreciation. Although it was a state issue. TP felled trees on his property and viewed them as a capital asset. Although direct expenses could possibly be included in the basis of the sale, indirect were not viewed that way according to the state auditor. If the taxpayer did the work themselves and bought equipment the viewpoint was that it was a personal asset and if depreciation was to be taken then we'd be talking about a Schedule C transactioon. There is much more to this story but that was the principle I was using.

So, I'd feel OK about taking a % of the snow plow in depreciation directly on C (through 4562) if it had a direct business association. However, if it did not I would view it as a personal asset and only take the indirect % of the actual costs for snow removal on 8829.

I am willing to stand corrected but this is how I feel right now.