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If we purchase tools for the purpose of renovating a rental property, can that purchase price be added to our basis? The tools of course wouldn't be consumed, and we'd still have them for use on our own home if we so desired.

Others may disagree, but I think this is too agressive. I wouldn't take depreciation for the tools.

99.9% of the time I agree with pmarti. The exception is when you purchase some tools that are very expensive; e.g. an industrial shaper or a complete pneumatic system with nailers which you specifically use for the renovation & then sell at the conclusion of the project. Then I would add the depreciation / capital loss on those tools to the basis of the proerty.

Normal stuff like portable electric / cordless tools used on the project & then added to your personal collection of tools should not be added to the basis of the project.


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