Capital Expenditure depreciated over life of property.

[Justin Fox]

So say you've been depreciating a property for 10 years.   Year 11 rolls around and you completely replace the roof.  Does that just increase the remaining depreciable balance (basis) for 17.5 years?  Or do you depreciate the roof separately for 17.5 years, or 27.5?

Also, say you make the improvement in June, do you apply the middle of the month rule to that improvement's portion for that first year?

Thanks,

Justin

[Oleg Kio]

@Justin Fox I agree, I think that was the intent of the new regulations, to simplify (and possibly encourage more spending which should help the economy.) I've taken the election in the past and certainly plan to do so this year.

As @Account Closed mentioned, that $2,500 limit is per item as well so if you replace 20 windows in a house and the total invoice is $12,000, I believe you can still expense the whole thing as long as the invoice clearly states that there were 20 windows.

Amanda Han wrote an article about it - https://www.biggerpockets.com/renewsblog/2015/11/27/breaking-new-tax-change-that-can-save-thousands-for-real-estate-investors/ - and I think Brandon Hall wrote some as well (for some reason I can't seem to tag them.)