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Updated over 6 years ago on . Most recent reply
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Capitalize Costs Incurred Before Service buy Paid After?
There is probably an easy yes or no answer to this, but I can't find it anywhere online or in my Nolo books: if I have repair costs "incurred" prior to me putting a rental into service, but were actually paid with cash after the rental was put into service, do I still capitalize them along with the purchase price and then depreciate?
Specifically, I had repair costs from Lowe's that they did not require me to actually pay until after the rental was put into service. So, the confusion for me comes from focusing on the cash accounting method, whereby the costs are really after the property service date.
Thanks!!!