I have a condo that I have been renting for a couple of years. I did some renovation on the 2 bathrooms this year and also had to replace pipes in the bathroom. The condo association is in the process of replacing the pipes in most of the units with Pex as they are 35 years old and many are needing replacement. I went ahead and replaced mine, since they were not going to as I did not want to have any future problems. I didnt have to do this as they are the association responsibility.
I then went ahead and renovated the showers. The cost to do the plumbing was $4,000 and the renovation was $9,000. I know that if this amount is over $10,000 I would need to depreciate over 27.5 years. My thought is that the plumbing is repairs and the shower is renovation. Since the renovation is less than $10,000 I can expense it all this year.
My only concern is if the plumbing would be considered part of the renovation and then I would have to depreciate. This is a unique situation and I believe I am right but wanted to see if anyone has any thoughts on this topic.
Thanks in advance, Jim
