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How do I treat a down payment I made in 2017 for a bathtub replacement that will be performed in 2018 on a rental property?
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How do I treat a down payment I made in 2017 for a bathtub replacement that will be performed in 2018 on a rental property?
If the total amount is less than $2500, then I think you have the option of treating it as an expense instead of depreciation. In which case, deduct the expense when you actually paid it.
If you choose to, or have to, depreciate the remodeling work, then you depreciate it beginning with when it was "placed in service" -- finished and ready to use.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*
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How do I treat a down payment I made in 2017 for a bathtub replacement that will be performed in 2018 on a rental property?
If the total amount is less than $2500, then I think you have the option of treating it as an expense instead of depreciation. In which case, deduct the expense when you actually paid it.
If you choose to, or have to, depreciate the remodeling work, then you depreciate it beginning with when it was "placed in service" -- finished and ready to use.
*Answers are correct to the best of my ability at the time of posting but do not constitute legal or tax advice.*