want to pay for a new furnace so the renter pays $3,700 for it. What depreciation method and life is available????
Landlord does not
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The renter is not allowed to depreciate anything. But the renter should take the landlord to court to get reimbursed. I'm assuming the renter is not a business.This post is for discussion purposes only and should be verified with other sources before actual use.
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Maybe in NY
the landlord has to pay for a new furnace if one is needed but I bet even there he can make the tenant prove that the old furnace was not only not working but was beyond repair.
I am not a lawyer and I could be wrong but I believe that in NC unless the lease says otherwise, repairs and maintenance are at the expense of the tenant. I certainly have heard many horror stories of slumlords not taking decent care of their propertiesComment
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Depends
first I assume this is some type of business property.
See TTB page 9-20 for qualified leashold improvement.
If your client does not qualify for this then the depreciation life is 39 years for non residential.Comment
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Not clear from your post
In any event though, seems that the 3700 would be additional rent paid and landlord has
to recognize in income; THEN he gets to add to basis of building and depreciate.ChEAr$,
Harlan Lunsford, EA n LAComment
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