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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.


The cost of tools would never be added to the basis of a rental property. Your choices conceivably would be to take as an expense or to capitalize separately and depreciate as a separate asset associated with the rental property. If you choose the latter route, you would have to determine what percentage of their use was attributible to the rental property and what percentage was "personal" use.

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