All Forum Posts by: Jon Begley

 Thank you for that information. I will pay close attention to the bill before I make any decisions. 

 Thank you for all of your help. I plan to look into the cost of a professional service.

 Thank you Soh, but on page 205 it appears that the conference decided not to change it if I'm interpreting things correctly. 

Conference Agreement

"The conference agreement follows the Senate amendment except that it maintains the present law general MACRS recovery periods of 39 and 27.5 years for nonresidential real and residential rental property, respectively. In addition, the conference agreement provides a general 15-year MACRS recovery period for qualified improvement property"

Thank you for your response. It is clear to see from the audit guide that things aren't always as simple as they seem. 

Does anyone know if the 25 year depreciation schedule from the Senate made it to the conference bill? I saw one summary were it was unchanged (27.5, 39) but I could only find the one source. 

I know it's a fine line. I'm not an engineer or CPA, but I was both the owner and developer of this building and I handled the contractors and wrote the checks. I can say with certainty that the road and parking area cost $12,966. This will be more exact than an engineers estimation but on the other hand, I may not be "qualified" depending on how you interpreted the code @Ashish Acharya was able to provide.

Edit: I forgot to mention that this building is in a low cost of living area and would not likely benefit from the upfront cost of a professional segregation.

I recently finished construction on an 8 unit apartment building and it contains a mixture of 5, 15, & 27.5 year property. My question is, I have invoices for what those specific items cost so do I still have to have a professional cost segregation done to break them out of straight line depreciation. My current tax preparer, whom I'm looking to replace, had no idea. Thanks in advance for any insight 

 You are correct Natalie. After a bit more google searching I found the IRS publication on depreciating materials and labor. Thank you for your time.

I think I answered my own question. After a bit more google searching, I found the following on the IRS website. Labor must be depreciated, same as materials.

Additions or improvements.

Add to the basis of your property the amount an addition or improvement actually cost you, including any amount you borrowed to make the addition or improvement. This includes all direct costs, such as material and labor, but does not include your own labor. It also includes all expenses related to the addition or improvement.

I am getting ready to have a roof replaced ($8,500) and the estimate list materials and labor separately. I know the roof would be a capital improvement but it got me think that labor isn't a depreciating asset. That leads me to believe that labor would be expensed and material will be capitalized. Is that the case? Thanks in advance