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posted Jul 20, 2020 10:40:41 AM

I have rental income and re--paved the driveway this year. Cost was $50,000. How can I deduct this?

Is this depreciated over time and if so how many years?

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1 Best answer
Not applicable
Jul 20, 2020 12:05:16 PM

from IRS PUB 946

 

15-year property.
a. Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).

if the above is 15-year property, I would say driveway paving is also 15-year property. 

 

 

you could also search the web for what others think, but what I found was that others also say it's 15 year property. 

3 Replies
Level 15
Jul 20, 2020 10:45:20 AM

If this is residential rental property, the driveway improvement is depreciated at the same recovery rate as the rental property, 27.5 years.

Not applicable
Jul 20, 2020 12:05:16 PM

from IRS PUB 946

 

15-year property.
a. Certain improvements made directly to land or added to it (such as shrubbery, fences, roads, sidewalks, and bridges).

if the above is 15-year property, I would say driveway paving is also 15-year property. 

 

 

you could also search the web for what others think, but what I found was that others also say it's 15 year property. 

Level 15
Jul 20, 2020 2:33:11 PM

I see lots of confusion with this. It's true that something such as a driveway would be depreciated over 15 years. But $50,000 for a driveway? Really? Is the house set 5 miles back from the road requiring a 5 mile long driveway to get to the house? That's the only way I can see a driveway costing that much. There are some things that would actually make this 27.5 year property.

If you installed a driveway and covered carport or enclosed garage, the entire project cost is depreciated over 27.5 years because it is "in fact" an improvement to the structure in it's entirety.  Even if the carport already existed and you just replaced the concrete floor and the driveway part to the street, it's 27.5 year property.

Another area of contention is when someone pours a concrete patio out back and tries to claim that as 15 year property. It's 27.5 year property because the intent of a patio is to expand the "usable floor space" to the outside of the structure.