New roof on SFR rental property - how to deduct?

[spride9]

I had the roof and gutters on one of my single family residential (SFR) rental properties completely replaced due to hail damage.  The entire cost to replace both was $17,830.  Insurance paid for $15,430 and I paid the $2,400 deductible out of pocket.  I understand a new roof qualifies as a separate asset and I will need to depreciate it over 27.5 years.  My question is what amount do I depreciate ($17,830 or $2,400)?  Thanks.

[DoninGA · Accepted solution]

You would use the $2,400 since that is your out of pocket cost to replace the roof.

[spride9]

Thank you.  I was leaning towards that but glad someone could confirm.

[Critter-3]

I would expense it as a repair due to the small amount   OR   add the insurance in as rental income and expense the entire repair cost.