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Updated about 12 years ago on . Most recent reply
Current or Capital? Tax guys out there, double check me, plz!!!
Hey there, guys!
Please, double check me on the correctness of expenses placement into current (a write off for 2012) or capital (depreciation).
1.building a new protective covering over electric panel bank (old one was deteriorating): CURRENT expense, since this repair restores the electrical box cover to its previous condition. I am afraid IRS can argue that it restored the box to a "like-new" condition, since its' a new box, and IRS would want it DEPRECIATED. So, is this current or capital expense???
2.purchase and placement of a lockbox: CURRENT expense, since we used it to show the vacant unit.
3.purchase and placement of new security screen doors: CAPITAL over 27.5 years
4.smoke/carbon monoxide detector purchase and installation: CURRENT
5.new blinds: CAPITAL over 5 years
5.restored hardwood floors: CAPITAL over 27.5 years
6. New kitchen cabinets purchase and installation: CAPITAL over 27.5 years
7.My Mac computer is being used 60% of the time for monitoring investment propertirs and doing research. I was hoping to have 70% of the cost depreciated as a CAPITAL expense over 5 years.
Do you agree?
Thank you,
Edita
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