Client purchased a piece of property with an older mobile home on it. The mobile home was in a very sad shape and not really livable. He spent about $7700 in supplies and materials to get it ready to rent. The client did all of the work himself so that amount was just the materials.
From what I read about repairs vs improvements this would be considered an improvement and would have to be depreciated over 27 1.2 years. I just want to get your opinion. Since it is such a large sum of money, it would make a huge difference on the tax return.
Linda, EA
From what I read about repairs vs improvements this would be considered an improvement and would have to be depreciated over 27 1.2 years. I just want to get your opinion. Since it is such a large sum of money, it would make a huge difference on the tax return.
Linda, EA
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