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Updated over 11 years ago,
depreciation on different types of property (mobile home park and self-storage)
On my residential rentals, I've always expensed small repairs (bad toilet, plumbing, etc) and any real "improvement" like new cabinets, total rehab, etc. depreciated.
Now that I'm looking into mobile home parks and self-storage, I have some questions:
1. Out the gate, if you purchase an existing property, how long and what do you depreciate for MHP's and self-storage? MHP's I believe you depreciate the roads, water lines, etc over 15 years. Is that right?
What about self-storage? That seems more complicated, since you have a lot of pavement and infrastructure, including security equipment, but also the buildings themselves. How is that typically done?
Also, in general, is there a specific rule for what constitutes a "repair" and what is a "capital expenditure"? Until a couple years ago I had someone just do my taxes for me, and the last 2 years I've only had minor repairs on my existing rentals, so I'm not sure myself.