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Make Those Needed Improvements Now

This time of the year business historically slows down for contractors, and given today�s economic malaise it�s a great time to barter for needed services to fix up your property.

Because repairs don�t materially add to the value of your property or prolong its life, repairs are immediately deductible. And they would include the following:

      painting, both interior and exterior

      fixing leaks and repairing the damage they caused

      cleaning the exterior of a building (when the work doesn�t prolong the building�s life)

      patching a roof

      shoring up a foundation to prevent its collapse

      fixing the deteriorated surface of a sidewalk, driveway, or parking lot

There�s going to be a flurry of activity in this area, so don�t delay in contacting your trade exchange to see what you can get in the way of painting, plumbing, electrical and roof repairs. Then decide how you�ll handle the repairs for tax purposes.

If business is slow now, or you�re starting up and have no income, you may want to spread out the deductions to future years when you expect to be in a higher tax bracket as deductions would be worth more to you then. Most of the time, however, you�ll want to take the write-offs as fast as possible.

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