Addition to Driveway for Parking - Deductible? Labor?

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  • TaylorTots
    Daycare.com Member
    • Dec 2013
    • 609

    Addition to Driveway for Parking - Deductible? Labor?

    We are adding an addition to our driveway to increase parking availability for parents. Keep receipts and deduct?

    If we do a large chunk of the work ourselves how does that figure in? If our labor can't be deducted we may just hire out.

    Thanks!
  • Michael
    Founder & Owner-Daycare.com
    • Aug 2007
    • 7947

    #2
    Hi. Our existing driveway is too beat up to repair so we are planning to replace it this summer. Will this be considered a home improvement or maintenance? Its my understanding that a repair/maintenance can be deducted in one year while improvements need to be depreciated.


    Originally posted by TomCopeland
    A driveway is a land improvement, not a home improvement. Therefore, you can deduct the business portion (time-space%) in one year on Form 4562, line 14.

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    • Ariana
      Advanced Daycare.com Member
      • Jun 2011
      • 8969

      #3
      Originally posted by TaylorTots
      We are adding an addition to our driveway to increase parking availability for parents. Keep receipts and deduct?

      If we do a large chunk of the work ourselves how does that figure in? If our labor can't be deducted we may just hire out.

      Thanks!
      Don’t quote me on this but doing the work yourselves will save much more money than hiring out and deducting at tax time. At least for me here in Canada. Might want to look into the percentage you get back vs. The cost of hiring someone.

      Comment

      • TomCopeland
        Business Author/Trainer
        • Jun 2010
        • 3062

        #4
        driveway

        Originally posted by TaylorTots
        We are adding an addition to our driveway to increase parking availability for parents. Keep receipts and deduct?

        If we do a large chunk of the work ourselves how does that figure in? If our labor can't be deducted we may just hire out.

        Thanks!
        Add up all the costs, multiply by your time-space% and deduct in one year as a repair. You can't deduct anything for your labor. If you pay someone to do the work you can deduct the time-space% of the the labor costs. Financially, you are better off doing the labor yourselves.
        http://www.tomcopelandblog.com

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