This comes directly from the IRS website and was the result of a court case:"For example, In Smith v Commissioner, 300 F 3d 1023 (9th Cir. 2002), the court concluded that the replacement of the aluminum smelting cell lining was a replacement of an essential component of the cell, extending the life of the cell and requiring capitalization."

I think I will be better off to perform separate inspections of each of the components, plumbing, electricity, structure ...in stead of home inspector touching everything ..I think the expert in one area would be better when it comes to kicking the tires on REO abandoned for 3yrs ...thanks!

Your approach of 1/useful life of each item is the best practice as long as there's a little inflation built into the replacement costs and some padding for unknowns.One of our standard due diligence items is an engineering inspection that includes estimates of the useful life remaining on building components.

Electrical updates are not cheap, nor are plumbing issues.Another aspect to consider is the insurance component.

I thought it might be helpful to someone: http://www.paccrestinspections.com/life.htmlIt's a list of components in a home, and the life expectancy for appliances, cabinetry and storage, concrete and masonry etc. there's even a price list.

It appears to have a lot of trim -- also note that the trim components for fiber cement systems add significantly to the overall cost.  

General MSA - How is it doing with Population growth, Job Growth, Components of Population Change, Major Employers, etc.3.

For the second option, you might be able to do it if you're comfortable setting up the network components.

Zoning is a key component of this discussion, as it can change over time.

Now I have a comp on a burned out POS.