Power line depreciation

[Gretel]

Power line was put in by land owner who needed it (instead of generator) to have enough power for animal operation (Raise dogs and horses).

My gut feeling tells me that this is part of the land, maybe land improvements (doubt it). Since they are living there and, on the side, raise dogs and horses, even if land improvement, it is a personal expense, right?

[Mo Sheets]

Food for thought....

Not sure where your client is based but....

Most of the time when a power line is placed across someone's property, an easement is given to the power company but no money changes hands. The taxpayer does not own the pole/line, therefore, they cannot depreciate it.

In some instances, when someone wants a new power line installed (we just had one installed last year for new construction), the power company indicates they will charge us $3000.00 but it is paid over the course of 36 months ($83.34/month). If our regular electric bill is at least $83.34, the entire amount is credited towards our monthly bill (regular usage). If any month falls below $83.34, we need to pay $83.34. Basically, we are not paying anything for the line, just our regular electric usage unless it happens to fall below the minimum.

This may not be your situation but thought I would throw that out there just in case...

Mo