I added siding to a rental property, which cost just over $10,000, and the value of the rental property is around $65,000. Am I able to claim the improvements as an expense or do I have to depreciate it over 27.5 years?...... Then, if I have to add it to my property assets, how would I categorize the asset: 1) Residential rental real estate, 2) Appliances, carpet, furniture, or 3) Land improvement?.... I believe I would choose 1, Residential rental real estate which would make it depreciate over the 27.5 years unless there is a way to claim it as an expense or a onetime special deprecation allowance?
You must capitalize this cost (create an asset under Residential real estate) and depreciate it over 27.5 years as siding forms part of the rental property and must be depreciated over the same useful life of 27.5 years.
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