 Expense or depreciation (by Imbubbleslaroo [WI]) Dec 14, 2018 12:35 PM
 Expense or depreciation (by myob [GA]) Dec 14, 2018 1:01 PM
Expense or depreciation (by David [MI]) Dec 14, 2018 1:16 PM
Expense or depreciation (by PG [SC]) Dec 14, 2018 2:40 PM
Expense or depreciation (by AllyM [NJ]) Dec 14, 2018 6:52 PM
Expense or depreciation (by fred [CA]) Dec 14, 2018 8:01 PM
Expense or depreciation (by myob [GA]) Dec 15, 2018 5:57 AM
Expense or depreciation (by WMH [NC]) Dec 15, 2018 6:30 AM
Expense or depreciation (by Ray-N-Pa [PA]) Dec 16, 2018 4:49 PM
Expense or depreciation (by Ray-N-Pa [PA]) Dec 16, 2018 4:49 PM
Expense or depreciation (by Imbubbleslaroo [WI]) Posted on: Dec 14, 2018 12:35 PM
Message:
State Specific Question About: CLICK TO SELECT STATE
Say you are selling a property and have a repair to that property that could either be expensed or depreciated. The repair is 4k and can be looked at at 4k for the building or 2k for each side of a duplex. Does it matter if it is expenses or depreciated on taxes? Repair done this year, property is selling in January. I don't know if I totally understand the rules! Any help is appreciated, thanks. --174.197.xx.xxx |
Expense or depreciation (by myob [GA]) Posted on: Dec 14, 2018 1:01 PM
Message:
I don't depreciate anything anymore. (except the property itself -- but nothing you can do about that. --99.103.xxx.xxx |
Expense or depreciation (by David [MI]) Posted on: Dec 14, 2018 1:16 PM
Message:
amen, myob, amen! --198.135.xxx.xxx |
Expense or depreciation (by PG [SC]) Posted on: Dec 14, 2018 2:40 PM
Message:
CPA'S, well at least the ones I have dealt with, want to depreciate everything. I agree with MYOB. It is a repair until proven otherwise. --99.197.xxx.xx |
Expense or depreciation (by AllyM [NJ]) Posted on: Dec 14, 2018 6:52 PM
Message:
I would depreciate an object like an appliance or roof but not a repair. --73.248.xxx.xxx |
Expense or depreciation (by fred [CA]) Posted on: Dec 14, 2018 8:01 PM
Message:
Repair is an expense and the IRS will not go after you for that. --99.59.x.xxx |
Expense or depreciation (by myob [GA]) Posted on: Dec 15, 2018 5:57 AM
Message:
ALLY we don't do that either. The appliances are rotated through property's. By that I mean I have a spare stove in the warehouse. Lets suppose it's been there a year-- who does it appreciate against-- it's not in a property but I purchased it 2 years ago. Since 1986 I've never depre a roof. Just saying it's gray-- I love gray..... --99.103.xxx.xxx |
Expense or depreciation (by WMH [NC]) Posted on: Dec 15, 2018 6:30 AM
Message:
If it's a single component invoice over $2500, you'd have a hard time proving it's not a capital expense that has to be depreciated. Meaning a roof replacement sort of thing. If audited.
But for a duplex, we can work on one side totally independant of the other (except for the joined roof, as mentioned.) --50.82.xxx.xx |
Expense or depreciation (by Ray-N-Pa [PA]) Posted on: Dec 16, 2018 4:49 PM
Message:
WMC is absolutely correct.
Are you sure you don't have two repairs on the same system going on? Each one is $2,000?
At $4,000 you are suppose to depreciate using safe harbor rules. And in an era of bonus depreciation the impact would probably be rather minor on such a small amount of money occurring at the sale of the property.
On your sales contract, is the buyer asking for you to make a REPAIR or a capital improvement? --72.23.xxx.xx |
Expense or depreciation (by Ray-N-Pa [PA]) Posted on: Dec 16, 2018 4:49 PM
Message:
WMC is absolutely correct.
Are you sure you don't have two repairs on the same system going on? Each one is $2,000?
At $4,000 you are suppose to depreciate using safe harbor rules. And in an era of bonus depreciation the impact would probably be rather minor on such a small amount of money occurring at the sale of the property.
On your sales contract, is the buyer asking for you to make a REPAIR or a capital improvement? --72.23.xxx.xx |
Reply:
|
|