For Tax Purposes: Are APUs an Expense or an Asset?

Question. Wouldn't it both a depreciating asset with deductible usage? In other words, to maintain it and fuel it would be an expense, while the unit itself would depreciate as a line item, either straight line, declining balance or multiple year?

 

No different than the truck.

It is a depreciable asset like the truck.

However, the truck requires insurance, fuel and maintenance as well.

These are just expenses of operations.

With an APU remember that you are entitled to get a refund of the fuel tax paid on the diesel used by the APU each year.

 

If it runs, it's an asset, if it breaks down, it's an expense.

 

Sounds like my X wife.

 

LOL, then you try to turn it over, "jump start it, etc..." to see if it works...
LMAO...

Kinda like a truck; it works and not too costly and gives a smile every now and then, keep it.
Breaks down all the time, super expensive and difficult to maintain, that is an easy answer, NO?

To the point: Maintenace of the unit should be part of the upkeep of "your" business, receipts are very important...