Siding for Rental House

[1040notEZ]

Replaced siding on a small rental house. House has fully depreciated for several years. The total value of the house is only about $30,000. The cost of the new siding is $9,200. Does the $9,200 have to be depreciated? If yes, how many years and does it have to be straight line depreciation?

[rgtaxservice]

...

Because the improvement was added to the structure of the house, I'd said 27.5 years.

[spanel]

agreed

agreed

Chris

[1040notEZ]

Does it have to be straight line or can I use another method that gives her more depreciation this year?

[kpangelinan]

Does it have to be straight line or can I use another method that gives her more depreciation this year?

Straight line only I believe.

[Burke]

You are stuck with 27.5 years unless you wish to go with 40.

[TAX]

Leasehold?

Will this be considered leasehold improvement - may cut down to 15 years - not sure

[Burke]

Not really. Leasehold improvements have to be tied to a lease (specifically written into it as a condition of the lease) and generally refer to interior renovations required by the tenant. Normally used in a commerical setting.