How can I know if a particular expense on my rental property is depreciable?

Posted by Big Daddy on April 5, 2009, 6:27 pm

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Hello,

I paid a few thousand dollars to replace the sewer line in the
backyard of a rental property. Is this an expense just for this year,
or is it depreciable such that the expense is broken up over several
years? I've owned rentals for several years and have had some
expenses that are depreciable (e.g. when I replaced a furnace) and
some that aren't. Is there a guide that can explain to me in plain
English (not accounting technical language) what sort of expenses are
depreciable and how many years they should be depreciated over?

thanks in advance,

John

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Posted by Arthur Kamlet on April 5, 2009, 9:47 pm

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>Hello,

>I paid a few thousand dollars to replace the sewer line in the

>backyard of a rental property. Is this an expense just for this year,

>or is it depreciable such that the expense is broken up over several

>years? I've owned rentals for several years and have had some

>expenses that are depreciable (e.g. when I replaced a furnace) and

>some that aren't. Is there a guide that can explain to me in plain

>English (not accounting technical language) what sort of expenses are

>depreciable and how many years they should be depreciated over?

Property improvements, land improvements, 15-year class life.
--

ArtKamlet at a o l dot c o m Columbus OH K2PZH

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<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
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<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
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Posted by Reggie on April 5, 2009, 10:55 pm

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> In article

>>Hello,

>>I paid a few thousand dollars to replace the sewer line in the

>>backyard of a rental property. Is this an expense just for this year,

>>or is it depreciable such that the expense is broken up over several

>>years? I've owned rentals for several years and have had some

>>expenses that are depreciable (e.g. when I replaced a furnace) and

>>some that aren't. Is there a guide that can explain to me in plain

>>English (not accounting technical language) what sort of expenses are

>>depreciable and how many years they should be depreciated over?

> Property improvements, land improvements, 15-year class life.

> --

improvement? sounds like a repair.

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Paul Thomas, CPA on April 6, 2009, 7:48 am

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>>>I paid a few thousand dollars to replace the sewer line

>> Property improvements, land improvements, 15-year class life.

> improvement? sounds like a repair.

Replace and fix are different activities.

Replace means putting in an all new line. Fix means patching it up.

The scope of the project is one of the determining factors.

--
Paul Thomas, CPA
Watkinsville, Georgia

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<< The foregoing was not intended or written to be used, >>
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Posted by Reggie on April 6, 2009, 10:41 am

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>>>>I paid a few thousand dollars to replace the sewer line

>>> Property improvements, land improvements, 15-year class life.

>> improvement? sounds like a repair.

> Replace and fix are different activities.

> Replace means putting in an all new line. Fix means patching it up.

> The scope of the project is one of the determining factors.

and the other determining factors are?

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<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>