You'll need to sign in or create an account to connect with an expert.
The $25k must be depreciated as it is an improvement. The recovery period is 27.5 years.
How Do You Treat Repairs and Improvements? If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the property, or adapts it to a new or different use. See section 1.263(a)-3 of the regulations. You generally deduct the cost of repairing business property in the same way as any other business expense. However, if the cost is for a betterment to the property, to restore the property, or to adapt the property to a new or different use, you must treat it as an improvement and depreciate it. Example. You repair a small section on one corner of the roof of a rental house. You deduct the cost of the repair as a rental expense. However, if you completely replace the roof, the new roof is an improvement because it is a restoration of the building. You depreciate the cost of the new roof.
The painting can be added to the improvement if it directly tied in to chimney repair or if unrelated can be an expense.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
jim202400
New Member
geowalk22
New Member
bjcksn04
New Member
the_foreigner465
New Member
cherd-njnetmail-
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.