Servicing business equipment belongs on Line 21, repairs and maintenance.
Why line 21
Line 21 covers incidental repairs and maintenance that keep business property working, and a service visit is the clearest case of it. The deciding test comes from the tangible property rules: an amount has to be capitalised only if it betters the property, restores it, or adapts it to a new use, and keeping a machine running does none of the three. Routine servicing you reasonably expect to repeat during the property's class life also falls inside the routine maintenance safe harbour, which keeps it a current deduction even when the bill is large.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so servicing business equipment lands on Line 21 without you sorting it.
Start for freeWhat servicing business equipment is confused with
- Form 4562, form 4562, carried to schedule c line 13
- A service visit that keeps the machine running is line 21, while rebuilding a worn out machine to like new condition is a restoration and is capitalised.
- Line 9, car and truck expenses
- Line 21 is property other than vehicles, so servicing a work van or truck is a car and truck expense on line 9.
Examples that belong on line 21
- A $380 annual service on a commercial espresso machine
- A $620 belt and bearing replacement on a CNC router
- A $240 calibration and service on a dental chair
- A $150 blade sharpening and tune up on a commercial mixer
- An $890 compressor service on a walk in cooler
What does not belong here
- A rebuild that returns a worn out machine to like new condition, which is a restoration.
- Servicing a vehicle, which is line 9.
- The cost of the machine itself, which is depreciated.
- Servicing equipment that only gets used for personal projects at home.
The limit that applies
Routine maintenance safe harbour: maintenance on property other than a building stays a current deduction when you reasonably expect to perform it more than once during the property's class life.
What to keep
Keep the service invoice naming the machine and describing the work, and the service history for the asset. A dated history is what shows a cost was recurring upkeep rather than a one off restoration.
Other expenses on line 21
| Expense | Line |
|---|---|
| a camera sensor clean | Schedule C, Line 21 |
| a laptop screen or battery replacement | Schedule C, Line 21 |
| an annual machinery service contract | Schedule C, Line 21 |
| an HVAC repair in a building you own | Schedule C, Line 21 |
| painting a rented studio | Schedule C, Line 21 |
| pest control | Schedule C, Line 21 |
| repairing a broken tool | Schedule C, Line 21 |
| routine cleaning of business premises | Schedule C, Line 21 |
Related lookups
Sources
This page explains how Schedule C lines work. It is general information, not tax advice for your situation. If an expense is large or the answer turns on a fact about your business, confirm it with your tax preparer.
Looking for a different expense? The full Schedule C line lookup has every line from 8 to 27 with the expenses that belong on each, and Schedule C expense categories walks the whole form in order.
Stop looking up lines one at a time. ClaryBook totals your year into an IRS Schedule C worksheet in form order, Part I and Part II line by line, so servicing business equipment lands on Line 21 without you sorting it.
Start for free