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Updated almost 6 years ago on . Most recent reply

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Justin Chappelear
  • Woodstock, OH
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Business Tax Question--Can I write off my personal bathroom???

Justin Chappelear
  • Woodstock, OH
Posted

Alright all, we followed the advice of everyone on here and started an S-Corp back in 2017 for tax purposes when flipping homes. Additionally, we own a duplex in the company name but that is not the basis for my question...

As the company has grown, we developed a following for our interior design. Therefore, we've morphed into giving advice, spec'ing out homes for people, and the purchase/staging of home goods for people around Columbus, Ohio. It's been a blessing so far, but herein lies the question.....in 2018 we completed a complete bathroom remodel in our PERSONAL home to the tune of about $35k. As such, we used our social media platforms to promote our newfound business of selecting different styles and matching them together to form a cohesive look for others. Through the promotion of our renovation and the finished product, we now have 3-4 clients that came straight from paid ads on Instagram and Facebook.

I'm wondering if a portion or all of the 35k renovation can be used as a tax write off because it was used for a business purpose (promotion). Our tax pro says no, but she had to seek out advice as well so I figured I would throw it out to my BP community. 

Thank you in advance!

Justin

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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
4,427
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Natalie Kolodij
  • Tax Strategist| National Tax Educator| Accepting New Clients
ModeratorReplied

I would lean toward no as well. 

Ordinary and necessary. You would need to PROVE that the renovation was the only reason you got those clients, and you wouldn't have acquired them if you used...photos or some other flip. 

Also- 99% chance that rental should not be held in that flip. If your tax pro did that and needed advice on this question...I'd look for one that's specialized in REI instead.

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Kolodij Tax & Consulting

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