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Updated about 12 years ago on . Most recent reply

User Stats

309
Posts
18
Votes
Edita D.
  • Investor
  • San Diego, CA
18
Votes |
309
Posts

Current or Capital? Tax guys out there, double check me, plz!!!

Edita D.
  • Investor
  • San Diego, CA
Posted

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

Most Popular Reply

User Stats

5,271
Posts
2,325
Votes
Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
2,325
Votes |
5,271
Posts
Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

http://www.biggerpockets.com/files/user/StevenHamilton/file/residential-depreciation-chart

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
  • Loading replies...