Are repairs and maintenance tax deductible?
Repairs and maintenance may be deductible when they relate to business property or the business-use portion of an asset. The big distinction is usually repairs vs improvements.
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On this page: Short answer · Who this applies to · When it’s deductible · When it’s not deductible · Example · Records · Related · FAQ
Short answer
Depends. Repairs and maintenance may be tax deductible when they’re ordinary and necessary for business use and they keep an asset in working condition.
Costs that significantly improve an asset (add value, extend useful life, or upgrade capacity) are often treated differently than simple repairs.
Who this typically applies to
- Business owners maintaining a workspace, rental space, or business equipment
- Self-employed individuals repairing business assets (tools, computers, vehicles)
- Anyone allocating repairs between business and personal use
If the asset is mixed-use (business + personal), you generally deduct only the business-use portion.
When repairs and maintenance are tax deductible
- The work fixes or maintains an existing asset (restore function, prevent breakdowns)
- The asset is used for business or income-producing activity
- The expense is ordinary and necessary for your business
- You can document the cost and business purpose (invoice + proof of payment)
When repairs and maintenance are not tax deductible
- The repair relates only to personal property (personal home, personal-use vehicle)
- The cost is reimbursed by an employer, client, insurance, or another party
- The work is primarily an upgrade or improvement rather than a repair
- You cannot support business use or lack documentation
Example
A small business uses a laptop and office space for daily operations.
Example
- A laptop screen is replaced to restore normal function
- The invoice shows the service performed and the cost
- Because the work restores the existing asset (instead of upgrading it), it may be treated as a deductible repair
If the work turns into a major upgrade (for example, significantly increasing performance or capacity), it may be treated differently than a standard repair.
What records to keep
- Invoices describing what was repaired and where the asset is used
- Proof of payment (receipt, card statement, bank record)
- Notes supporting business use percentage for mixed-use items
FAQ
Are repairs tax deductible for a business?
Repairs are often deductible when they keep business property in working condition and do not significantly improve or extend the life of the asset.
What’s the difference between a repair and an improvement?
A repair generally fixes or maintains an asset, while an improvement typically adds value, increases capacity, or extends useful life. Improvements are often treated differently for tax purposes.
Can I deduct repairs on a personal home?
Personal home repairs are generally not deductible. If part of the home is used for business, a business-use portion may be deductible in some cases.
Looking for other deductible expenses? See the full Expense Deductibility Guide.
Last reviewed: January 30, 2026