Hi,
My case is similar to the original post.
However, I want to ask in further details as to how to account for the costs in building this new unit (mine is detached). You mentioned engineering/architect fees can be added to the construction costs for depreciation over 27.5 years; what about other city costs such as plan check fees, school board fees, permit fees, and other inspection fees related to this additional unit? Can these all be added to the total cost of the unit to be depreciated? Additionally, from start of the home design with the architect to final inspection was almost 2 years. So how should I report this capital improvement project on my 2018 and 2019 tax returns?
thanks,
K
