Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 2
posted Apr 11, 2020 1:28:38 PM

How to handle rental electrical rewiring cost

I have a single family rental that needed extensive electrical repairs while being occupied by a tenant. The work done was to rewire the house electrical from the main breaker box to all outlets. The cost was $21k. Is this expensed, or does it need to be depreciated? It was work needed for habitability. If it needs to be depreciated, over what time period?  -- Thanks,

0 1 414
1 Best answer
Expert Alumni
Apr 11, 2020 1:43:32 PM

Yes, it needs to be depreciated. It is an improvement. It has a useful life of 27.5 years, the same a the rental house.

1 Replies
Expert Alumni
Apr 11, 2020 1:43:32 PM

Yes, it needs to be depreciated. It is an improvement. It has a useful life of 27.5 years, the same a the rental house.