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Property improvements on rental properties - does remodeling refer to landscaping costs, or just improvements to the structure of the house?
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Property improvements on rental properties - does remodeling refer to landscaping costs, or just improvements to the structure of the house?
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Property improvements on rental properties - does remodeling refer to landscaping costs, or just improvements to the structure of the house?
improvements major sidewalks landscaping 2018
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Property improvements on rental properties - does remodeling refer to landscaping costs, or just improvements to the structure of the house?
@pbsm1957 and your question is?
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Property improvements on rental properties - does remodeling refer to landscaping costs, or just improvements to the structure of the house?
Sidewalks is a 15-year property. Landscaping, such as the removal of trees, leveling of the land and the such are land improvements that do not get depreciated, but are added to the cost basis of the land.
So when entering those types of landscaping costs, you classify it as residential rental real estate and the amounts in the COST box and the COST OF LAND box will be exactly the same. That way, it adds to your cost basis but does not get depreciated since those type of land improvements are not supposed to be depreciated.
Now if things like land leveling and tree removal were required for installation/upgrade of the sidewalk, then that makes it "a part of" the sidewalk upgrade/installation. It all gets classified together as 15-year property and the total cost is depreciated over 15 years.
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