Can I build a large shed for my rental property supplies and equipment and divide the cost of the shed between 8 properties or depreciate it off one property?

[snowpuke]

This is a pole barn that cost about $24,000 and has a recovery period of 20 years.  I store equipment used to maintain the duplex apt.s (lawn tractors, weed eaters, blowers, power tools, ac equipment, plumbing materials and supplies, bush hog, electrical equipment, and much more)

[snowpuke]

This is a pole barn that cost about $24,000 and has a recovery period of 20 years.  I store equipment used to maintain the duplex apt.s (lawn tractors, weed eaters, blowers, power tools, ac equipment, plumbing materials and supplies, bush hog, electrical equipment, and much more)

[TaxGuyBill]

If it is a pole barn on your personal property, it would be depreciated over 39 years (assuming it is in the United States).

[Carl]

That would be an asset. However, if it costs you less than $2500 then you can just expense it. But you can only expense it to the one rental property you built it on. If more than $2500, you'll classify it as rental real estate and depreciate it over 27.5 years as an asset for the rental property you built it on. Keep in mind that for cost, you can only claim what you actually pay for the materials. *YOUR* labor, if you do the actual work, is not deductible.

If you pay someone else to do it and send them a 1099-MISC for what you paid them to do it (if more than $600) then the total of both the materials and labor are claimable as the total cost of the asset.