Chimney Depriciation (by Jerome [OH]) Mar 13, 2014 11:46 AM
Chimney Depriciation (by Kyle [IN]) Mar 13, 2014 12:52 PM
Chimney Depriciation (by MTL [MN]) Mar 13, 2014 3:01 PM
Chimney Depriciation (by Jerome [OH]) Mar 13, 2014 8:29 PM
Chimney Depriciation (by MTL [MN]) Mar 14, 2014 7:03 AM
Chimney Depriciation (by Kyle [IN]) Mar 14, 2014 12:11 PM
Chimney Depriciation (by Jerome [OH]) Posted on: Mar 13, 2014 11:46 AM Message:
State Specific Question About: OHIO (OH)
I realize there are many items to be depriciated. I recently purchased the book, "Every Landlords Tax Deducation Guide " by Stephen Fishman, he covered deprications, and in that section he listed the chimney, and walls. How does one go about finding the deprication amount for chimeys and walls. We do not have a fireplace in our unit. Also, not for sure if the roof can be depriciated. All answers are appriciated. Thanks --205.188.xxx.xx |
Chimney Depriciation (by Kyle [IN]) Posted on: Mar 13, 2014 12:52 PM Message:
Chimneys and walls are building components and depreciated with the building over 27.5 years. --68.46.xxx.xxx |
Chimney Depriciation (by MTL [MN]) Posted on: Mar 13, 2014 3:01 PM Message:
second Kyles notion.
is this a property you purchased last year or a chimney repair/replace in the last year? --75.144.xx.xx |
Chimney Depriciation (by Jerome [OH]) Posted on: Mar 13, 2014 8:29 PM Message:
No, we purchased this property in 2013, this is our first rental so I am still learning as I go. This may sound silly but I was thinking that you could depreciate any of these components on your taxes, such as windows, doors, furnances, sinks, bathtubs, etc. with a seperate entry for each. But I guess it all goes into the depreciation of the building. So my next question is how do your determine the improvment value of your rental so you get a good depreciation value, since it will last for 27.5 years --205.188.xxx.xx |
Chimney Depriciation (by MTL [MN]) Posted on: Mar 14, 2014 7:03 AM Message:
You can depreciate everything (except the land), but it falls into different categories so you're not depreciating 100s of individual items. Read chapters 5 and 6 of every landlords tax deduction guide for more guidance. Below is a short summary.. I'm not a tax pro, use at your own risk.
There is basically two ways to depreciate your rental. You can lump the house and everything included in the purchase and depreciate over 27.5 years, or you can break out the building, personal property and land improvements then depreciate each group separately. Breaking things out will give you higher deductions earlier on, and lower deductions later. It's all the same after 27.5 years..
The building and it's components depreciate over 27.5 years, the windows, doors, furnaces, sinks, bathtubs, roof, plumbing/electrical systems, etc are considered building components and are depreciated with the building.
Land improvements depreciate over 15 years, this includes patios, driveways, walkways, landscaping, fences, etc.
Personal property depreciates over 5 years. Think of personal property as anything you might go out and buy and put in the rental that is not permanently part of the building... appliances, blinds, some floor coverings, window ACs, space heaters, lawn mower, snow blower.
I tried doing my own taxes for a while, but I wasn't sure that I was filling out the correct forms and did not have confidence that I was doing everything correctly. I ended up going in to get some help, it cost about $200, but now I know that it was done correctly and know what I'm doing for next year. I would suggest getting a pro to help you out for at least the first year, I'm glad I did. --75.144.xx.xx |
Chimney Depriciation (by Kyle [IN]) Posted on: Mar 14, 2014 12:11 PM Message:
You can depreciate each component on its own, but if they were placed in service at the same time and are depreciated over the same time, the total depreciation will be the same.
There are several ways to calculate the land value, which you want to be low because you cannot depreciate the land.
Once you subtract the land value from your total investment, you can split out personal property. This includes window treatments, carpets, floating floors, and decorative and exterior lighting. Whatever is left after you split those things out is your building value to be depreciated over 27.5 years. --68.46.xxx.xxx |
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