Capital or Expense?

[Dawn Hall]

Are the following items considered capital items to depreciate or expense for tax purposes?

- Hot Water Heater
- Blown-In Insulation in Attic
- A New Front Door

We also bought a lawn mower and tiled one of our apartments, which I presumed are Capital depreciable items.

Thanks.

[Steven Hamilton II]

Dawn,

The hot water heater will be depreciated.(7 Years)
The insulation will be depreciated(27.5 Years).

The door will be determined if it is to replace a damaged door or to improve it:
If you are replacing the door because of damage that one will be an expense.
If you are upgrading the door, sidelight and door frame... etc. Than you will be depreciating that(5 Years).
If you are doing both you must depreciate it.

There is not a $100 dollar floor. This is a myth to justify the cost of creating the depreciation schedules for smaller items..

-Steven the Tax Guy