Originally Posted by rbljack
I have a related question here as well. Because our equipment requires maintenance (oil changes, cleaning, lubes, tune ups, blade sharpening etc)...can we include that TIME we dedicate to that as an expense in addition to the materials. As an example, if we spend 8 hrs a month doing oil changes, blade sharpening, etc....can that TIME be applied as an expense? I havent had time to research this yet, but seems like a logical thing to me. IF we make X dollars per hour net, seems we should be able to log the time for maintenace like we do mileage, and then subtract that time and dollar value from our Net Income somehow.
If you want to deduct your equipment maintenance time you'll have to send it out to the shop or have an employee do it. If people could deduct the time they spent as an owner, people would be spending thousands of hours on it, lol. Similary you can't deduct your time doing administrative tasks unless you're paying yourself hourly and keeping time sheets and all.
I deduct any equipment purchases under $500 in the same year and depreciate the rest over time. All of my equipment is fully depreciated now except for my snow plow. Some companies turn their equipment over as soon as it's fully depreciated.