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Posted by Arthur Kamlet on August 27, 2007, 2:12 am
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>>>>> Hi all. I have owned a rental home for many years. I am
>>>>> planning on installing new windows thru-out the home that
>>>>> will cost appoximately $9K. Can I deduct the $9K against
>>>>> the rental income all in one year, or do I have to place the
>>>>> $9K on the depreciation schedule and deduct it over the 20
>>>>> years? I am also planning on a new roof next tax year, so I
>>>>> would have the same question for that.
>>>> In each case I'd consider them to be a new asset, with 27.5
>>>> year expensing.
>>> What happens to the remaining costs of the old windows and roof?
>> I doubt you have segregated costs for those items from the
>> initial purchase, or for that matter, from construction
>> records.
>>
>> Generally the house cost basis continues to be depreciated
>> over time with no change in it's initial basis because you
>> stripped off the shingles or replaced windows or doors.
>>
>> As I recall, replacing shingles is treated as a repair
>> expense unless you start replacing the roof deck or other
>> roof structural systems.
> I am having trouble reconciling this answer to Art's
> original answer.
Five shingles here, ten shingles there, that's maintenance.
Replacing much or all of the shingles, that's a separate
new asset, 27.5 years.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
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