Depreciation of Cap Ex

[Jim Macedon]

My question is about depreciating capital expenses.

I understand that I depreciate the building over 27.5 years.  I have also been told that capital expenses must be depreciated rather than claimed as expenses.  But how?  Do you just add the cost of the cap ex to the basis or is each cap ex depreciated separately?

[Karen O.]

This is why you need to work with your CPA.

Capital purchases have different rates of depreciation.  Some things are depreciated over 3 years, some over 10, etc.  Roofs, vehicles, furnace, etc are each depreciated on their own schedule as defined by the IRS.