21 — Repairs and Maintenance Updated for tax year 2025

What this line means

Costs to repair and maintain business property, equipment, and vehicles (if using the actual expense method). Repairs keep your property in working condition without adding value or extending its life — fixing a broken window, patching a roof leak, servicing equipment, replacing a worn belt on a machine. Improvements that add value or extend the useful life of an asset are not repairs — they must be capitalized and depreciated on line 13.

Does this apply to you?

• You paid to fix broken equipment, tools, or machinery
• You had repairs done to a commercial space you own or lease
• You maintained vehicles used for business (oil changes, brake pads, tire replacement)
• You paid for routine maintenance on business property — HVAC servicing, plumbing, electrical

Easy to overlook

The repair vs. improvement distinction Fixing a roof leak is a repair (deductible now on line 21). Replacing the entire roof is an improvement (capitalized and depreciated on line 13). The distinction matters because repairs give you an immediate deduction while improvements must be spread over years. The IRS scrutinizes large “repair” deductions — if the work materially increases the value or extends the life of the asset, it is an improvement. ¹ [SOURCE: IRS Regulations — repair vs. improvement distinction]

Routine maintenance safe harbor The IRS provides a safe harbor for routine maintenance — recurring activities you expect to perform more than once during the asset’s life to keep it in working condition. If your maintenance fits this definition, you can deduct it as a repair even if the amount is large. Document that the maintenance is part of your regular schedule. ² [SOURCE: IRS Schedule C instructions — Line 21]

Watch out for this

Deducting the cost of a major renovation or upgrade as a repair. Adding a new room to your office, upgrading your electrical system, or replacing all the flooring are improvements — not repairs. These must be depreciated over their useful life on line 13. Calling an improvement a repair is a common audit trigger for small businesses.

Related lines on your return

• Line 13 — Schedule C — Depreciation; improvements that add value are depreciated here
• Line 9 — Schedule C — Car and truck expenses; vehicle maintenance goes on line 9 if using mileage rate
• Line 22 — Schedule C — Supplies; replacement parts consumed in repairs can go on either line