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Updated about 4 years ago on . Most recent reply

User Stats

11
Posts
1
Votes
Deb L.
  • Real Estate Investor
  • Lake Mary, FL
1
Votes |
11
Posts

Tax/depreciation questions bathroom remodel

Deb L.
  • Real Estate Investor
  • Lake Mary, FL
Posted

I'm having the master bath remodeled starting in January-cost about 9K. It continues to be occupied by good tenants.   I gave the contractor 3K deposit this week for cabinets, etc and I will also be buying some lighting, toilet, etc in December.  Do I start depreciating this in 2020 (the 3K plus lighting, toilet, etc) or do I start in 2021 since nothing has been "done" yet?

Also, about four years ago, I had a handyman redo the same shower (shower only, about $2500) which I was depreciating.  It has failed/leaked so this is why I'm getting the shower redone again, plus doing the rest of the bathroom this time.

Can I continue to depreciate the first shower redo in addition to the new one?  Or do I stop depreciating the first shower and start with the new bath?

Thanks! 

Most Popular Reply

User Stats

228
Posts
45
Votes
Ahad Ali
  • CPA/Investor
  • Bronx, NY
45
Votes |
228
Posts
Ahad Ali
  • CPA/Investor
  • Bronx, NY
Replied

@Deb L.

You can depreciate improvements made in your rental property. You can actually add this improvement cost onto the existing depreciation and don't need to stop the previous depreciation.

As to claiming in in 2020 or 2021, I would suggest beginning the depreciation once the job is done. Its rather hard to explain depreciation on an item that is not complete or in use yet.

I would suggest to speak directly with a CPA as that would typically yield more information than what a forum post can.

  • Ahad Ali
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Ahad&Co CPA
4.9 stars
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