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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4479
Experience:  35 years tax experience, including four years at a Big 4 firm.
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My question is very specific and should be quick CPA

Customer Question

My question is very specific and should be quick for any CPA who's familiar with company taxes.
I am filing my LLC tax return of form 1065. I did a bunch of tenant improvement for a salon which including the construction contractor I hired to perform the work. I understand the cost of purchasing floors, fixtures, furniture all needing to go into Asset for depreciation.
How about the labor cost for my contractor? I issued 1099 for him. Will this be included in the Asset for depreciation for for "payment to independent contractor"? Better to be payment to contractor as I can take the deduction and business loss this year.
Submitted: 1 year ago.
Category: Tax
Expert:  PDtax replied 1 year ago.
Hi from just answer. I'mCustomer I'll assist.The labor all had to be capitalized as part of the installed cost of the assets. I know it would be better to take the deduction, but you can't.Add a portion for each item installed.Thanks for asking at just answer. Positive feedback is appreciated when you accept my response. I'mCustomer