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Depreciation of Renta; Property

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    Depreciation of Renta; Property

    For rental of residential property 27.5 years of the life of the asset. That applies to the house held for rental. Does this life apply for a new roof? What is the life of a new air condiitioning unit?
    Is there any way to expense either as a current expense? According to the TB both need tobe depreciated.

    #2
    Originally posted by Chief View Post
    For rental of residential property 27.5 years of the life of the asset. That applies to the house held for rental. Does this life apply for a new roof? What is the life of a new air condiitioning unit?
    Is there any way to expense either as a current expense? According to the TB both need tobe depreciated.
    A new roof needs to be depreciated at 27.5 years. That being said there have been some situations where a roof was a repair. (Like - when is a door not a door - when it is ajar.)
    The air conditioning unit may be a structural component or may not be - it depends on the unit. 27.5 if structural with ductwork and all.

    There is no way to expense an asset in a rental. If it is an operating expense ...it is an expense.
    JG

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      #3
      Originally posted by JG EA View Post

      There is no way to expense an asset in a rental. If it is an operating expense ...it is an expense.
      Well, techinically speaking of course, but what about 100% bonus depreciation?
      ChEAr$,
      Harlan Lunsford, EA n LA

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        #4
        That has been a real bonus to my rental clients this year, in spite of the add-back on the state which doesn't allow it. Circumvents 179 problem. At least for this year.

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          #5
          Might I add:

          It seems the bonus is not available to a MFS taxpayer.

          Peachie

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            #6
            bONUS DEPRECIATION

            Originally posted by ChEAr$ View Post
            Well, techinically speaking of course, but what about 100% bonus depreciation?
            Bonus depreciation is only available for assets with 20 years or less life on the tables. So anything that is considered a part of the structure is out, a 5 year asset (for example) can take bonus depreciation.
            AJ, EA

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