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Updated over 4 years ago, 07/22/2020

User Stats

20
Posts
7
Votes
Eric Littlepage
  • Rental Property Investor
  • Saint Louis, MO
7
Votes |
20
Posts

how complicated does depreciation need to be?

Eric Littlepage
  • Rental Property Investor
  • Saint Louis, MO
Posted

I'm doing my taxes for 2017 now.  I've had a duplex since 2012, with tenants in it since 2013.  2017 was a particularly rough year--my property management company has recorded $5700 of repairs that were done, and in between tenants I performed another $1900 of repairs and upgrades (new cabinets).  I hate dealing with depreciation and determining what is a repair (usually is) vs. improvement, but it looks like I need to capitalize this if repairs are more than 2% of the basis.  So, if I need to capitalize all this, I'm wondering how to make this simpler--can I lump them all into one capitalization for 2017?  Or does each month need its own schedule?  Or every purchase?  I have 20 receipts to Home Depot for the year...

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