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New Member
posted Jun 5, 2019 11:42:12 AM

Can I deduct a water well I drilled at my rental property?

I drilled thinking it would benefit renter, but it was dry and I spent $10k to do it

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1 Best answer
New Member
Jun 5, 2019 11:42:16 AM

Generally a water well is a land improvement and depreciated 15 years.

If a test hole, dry hole, or dried-up well (resulting from prolonged lack of rain, for instance) is abandoned, you can deduct your unrecovered cost in the year of abandonment. Abandonment means that all economic benefits from the well are terminated. [Publication 225]

2 Replies
New Member
Jun 5, 2019 11:42:16 AM

Generally a water well is a land improvement and depreciated 15 years.

If a test hole, dry hole, or dried-up well (resulting from prolonged lack of rain, for instance) is abandoned, you can deduct your unrecovered cost in the year of abandonment. Abandonment means that all economic benefits from the well are terminated. [Publication 225]

New Member
Jun 5, 2019 11:42:17 AM

Where in turbotax would this information be entered?