I am trying to depreciate the painting of my barns.
The cost of painting a structure is not depreciated. It's a flat out expense.
In order to qualify as a property improvement asset that is capitalized and depreciated, two criteria must be met.
- The improvement must become "a material part of" the structure.
- The improvement must add "real value" to the structure. In other words, when appraised by a certified, qualified, licensed property appraiser they will appraise it at a higher value than they would have without the improvment. Painting alone does not add value to the property. Theres no guarantee a buyer will pay more just because it was painted. In fact, they may not even like the color.
However, when you do a "real" property improvement (such as replacing the siding) you will of course paint it after you replace that siding. But the cost of painting is included in the total of the property improvement cost. It is not separated out from it. Doesn't matter if you only replaced siding on one side and painted the entire structure to make everything match. That cost of painting is "still" a part of the property improvement.
