Can tools/equipment be counted towards my home's cost basis?

Question

Assuming a tool was used to make a house improvement that exists when the home is sold, can the tool be counted towards the home's cost basis?

Examples of tools I foresee as yes:

1. Miter saw used to build a deck
2. Router bit used to make baseboards
3. Soil compactor used to make a driveway

Examples of tools I foresee as no because they're for general maintenance / upkeep:

1. Lawn tools such as mower, hedge trimmer, leaf blower
2. Pressure washer

Examples of tools I am unsure about but believe they would fall into yes because they contribute to a permanent project/cost of the home:

1. Dust collection for the miter saw example above. The dust collection doesn't make the cuts, but it makes them possible in a safe manner.
2. Ratchet straps used to deliver materials which are used to build a permanent upgrade into the home. I'm unsure about this type of tool since it's sort of a delivery cost of the build materials, but a cost nonetheless towards the home upgrade.

Edit: Location being United States, Washington

Answer 1

No, tools cannot be added to the basis of your home. Tools are separate assets and have their own basis. They're not attached your home, their utility is not tied to your home or limited by it, and they can be disposed of separately from your home.

If you're in the business of building homes, then tools are depreciable assets on your balance sheet with depreciation being the business expense. If this is your own residence, then tools are just your personal property and are treated the same way as any other personal property (e.g.: your car, your bed, or your toilet paper).

Answer 2

Ditto to @littleadv and I upvoted his answer. Let me just add one point:

Ignoring tax law for the moment, just thinking of ordinary accounting: If you counted the cost of a tool as part of a home maintenance project, that the value of the project when you're done would be the increased value of the house, PLUS the value of the tool. Assuming there was minimal depreciation on the tool in the course of the project -- using a miter saw to build a deck probably doesn't put significant wear on the aw, it's worth almost as much when you're done as when you started -- the net difference here would be zero. That is, without counting the cost of the tool, you might say $1,000 for supplies, increase to value of home $2,500, net gain for the job, $1,500. If you spent $200 on tools, then you have $1,200 for supplies AND tools, net increase to value of home $2,500, value of tools at the end of the job $200, net gain for the job, $1,500.

When you're done with one job, a tool can at least potentially be used on another job. So tools must be depreciated separately from the job they were used to perform. If you're not in the home maintenance business, there's no place to claim that deduction, so you're basically out of luck. And in most cases the deduction would be trivial. You'd be talking about a few weeks worth of depreciation on a tool you bought for $100. What's that going to come to, a few dollars? Unless you had to buy some really expensive tool, it wouldn't be worth the record keeping.