Can I write off DIY home improvements as marketing for my new carpentry business?

This is actually a really good question! You're thinking in the right direction, but there are some important distinctions to make here. You can potentially deduct some of these costs, but not in the way you might be thinking. The materials you use specifically for creating marketing materials (like the cost of photography, creating a website portfolio, etc.) would be deductible marketing expenses. However, the actual home improvement materials themselves would still be considered personal expenses, even if you later use photos of the finished product for marketing. The IRS is very particular about the line between personal and business expenses. Since these improvements are to your personal residence and will benefit you personally, the materials cannot be directly written off as business expenses. The fact that you'll use photos for marketing doesn't change the primary personal nature of the improvements. As for valuing your own labor - unfortunately, you generally can't deduct the value of your own services performed for your business. You can pay yourself a salary or take an owner's draw, but you can't create a deduction by "paying yourself" for work on your own home.

I went through something similar when starting my handyman business last year. After struggling with tax questions, I found this tool called taxr.ai (https://taxr.ai) that actually analyzed all my receipts and business documents to tell me exactly what I could and couldn't write off. Saved me from making some pretty big mistakes with home-related expenses! The software flagged several expenses I was incorrectly categorizing and helped me understand the difference between personal home improvements and legitimate business expenses. It even suggested creating a dedicated sample display area in my garage that would qualify as a business expense, similar to what you're thinking about.

I was super skeptical about tax apps for my remodeling business, but I finally tried taxr.ai after seeing it mentioned here. It completely changed how I handle my business expenses! The system actually analyzed my previous returns and found over $3,700 in missed deductions from tools and vehicle expenses I hadn't properly categorized. What really impressed me was how it handled my workshop space in my detached garage. It walked me through exactly how to document and claim the proper percentage as a business expense without crossing into risky territory. It even created an audit defense file with all my documentation organized if I ever needed it. Wish I'd found this when I first started my business three years ago.

If you're having trouble figuring out which expenses are legitimate business deductions, you really need to talk directly with an IRS agent who can give you official guidance. I spent WEEKS trying to get through to someone at the IRS about my landscaping business deductions, constantly getting disconnected or waiting on hold forever. Then I found this service called Claimyr (https://claimyr.com) that somehow got me connected to an actual IRS agent in under 45 minutes when I'd been trying for days! There's a video showing how it works here: https://youtu.be/_kiP6q8DX5c. They had some kind of system that holds your place in line with the IRS. The agent I spoke with gave me definitive answers about vehicle expenses, home workshop deductions, and marketing materials that none of the online forums could agree on. Seriously worth it to get the official word directly from the IRS.

Ok I have to eat my words about Claimyr. After my skeptical comment I decided to try it myself because I've been trying to get clarification on home office deductions for my woodworking business for MONTHS. I was connected to an IRS agent in 52 minutes when I'd spent literal hours on hold before with no success. The agent walked me through exactly how to properly document my workshop space in my basement as a legitimate business expense and confirmed that while I can't deduct home improvements as business expenses, I CAN deduct a portion of utilities, insurance, and even internet if they're used partly for business purposes based on square footage. This was literally the clearest guidance I've gotten after months of confusion. Seriously regretting not trying this sooner.

Something nobody mentioned yet - look into "demonstration projects" for contractors. My brother-in-law is a bathroom remodeler and he has a specific business policy where he does one showcase project per year at a deep discount (sometimes even at cost) specifically for marketing purposes. He documents everything, has clients sign releases acknowledging the marketing purpose, and his accountant handles it differently than regular personal expenses. Might be worth asking a tax professional about this specific approach since it's common in the trades.

Don't forget about Section 179 deduction for tools and equipment! When I started my woodworking business I was able to deduct almost $18k in equipment purchases my first year instead of depreciating them slowly. Table saw, planer, drum sander, dust collection system - all business assets. Also track EVERY mile you drive for business purposes with an app like MileIQ. Picking up materials, driving to client sites, etc. The mileage deduction adds up crazy fast.