Quickbooks Special Assessment Tracking

[Carlos Perez]

Hi, 

Not sure if the tax forum is the correct section to post this. Its accounting, but eventually about tax.

How should Special Assessments be tracked in Quickbooks? And how do I depreciate/tax it?

My HOA created a special assessment of $5000 over 3 years. So $138.89/mo. For roof repair.

Given that repairs like these need to be depreciated (property improvement), I can't enter the $5000 as an expense for the year, nor the monthly $138.89.

Does each year's total payment ($138.89x12 = $1666.68) need to be depreciated over 27.5yrs at the end of each year. Or should I start depreciating the full $5000 from first year even if I haven't made the full $5000 payment yet?

I believe it should be the latter, as any special assessment payment plan should be independent of the of the actual improvement.

I would like to hear your thoughts.

Thank you.