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    RV repair costs

    RV cost $100,000 and has $5,000 of repairs related to AC. Is this expensed or capitlaized

    #2
    Unless it is held out as a rental, used as a home office or business neither.
    "Dude, you are correct" Rapid Robert

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      #3
      It is used in a trade or business 100%. Can it all be expensed?

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        #4
        Depends on what each bill is totaled as, each cost if less than $2500 it can be expensed otherwise it must be depreciated.
        "Dude, you are correct" Rapid Robert

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          #5
          Do they have financial statements and a written policy, giving them a $5,000 de minimis safe harbor? If not, then Dude's post about comparing each item to the $2,500 safe harbor might work if the invoice(s) are itemized. Or, is the air conditioning expected to be repaired more than once in a 10-year period?

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            #6
            Originally posted by Florida_EA View Post
            It is used in a trade or business 100%. Can it all be expensed?
            An RV used 100% in a trade or business? No taxpayer sleeping in the recreational vehicle? That would be surprising.

            You don't give any facts so I can't tell you if this is anywhere near on point but I would take a look at TCM 2014-160.

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              #7
              Originally posted by New York Enrolled Agent View Post

              An RV used 100% in a trade or business? No taxpayer sleeping in the recreational vehicle? That would be surprising.

              You don't give any facts so I can't tell you if this is anywhere near on point but I would take a look at TCM 2014-160.
              The taxpayer probably rents them out, where I am, there are many business that rent out RVs.

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