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Painting..Expense or Depreciate??

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    Painting..Expense or Depreciate??

    Client owns 2 family owner occupied residential rental. After her tenants moved out, she repainted the entire rental unit at a cost of $1465.00. She also repair front yard fence costing $1750.00
    Should I depreciate cost of painting? I'm thinking yes because its a "restoration project", and if so, how many years to depreciate for?
    For the fence, can I depreciate it even though its not directly connected to the rental unit? If i can depreciate, once again for how may years?

    Thank you all in advance for the replies!!!

    #2
    I have always expensed painting under repairs.
    Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDR

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      #3
      The only time I consider painting to be capitalized is if it is done as part of an overall restoration project. For example, if while painting, they changed the carpets, laid new tile, changed out the countertops, put in new blinds, lighting fixtures, plumbing fixtures, etc.. etc...(in other words a lot of work). Then it might need to be capitalized.

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        #4
        My Answers

        Paint expense
        Fence depreciate 15 years.

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          #5
          I agree with painting as an expense. However, there is not enough information for the fence. Poster says it's a repair. The question is how much would be the cost of replacing all of the fence. It might be a repair in relation to that amount.

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