RENTAL PROPERTY- I have rented out my home and property to the same family for 20 years.

[Lynn_alford]

I had to put in a new well that cost $40K

1. Can I deduct the cost of the pump under "expenses"?  what about other materials to make the well function?

2.  does my new well qualify for a bonus depreciation allowance of 80% of cost?  will turbotax walk me thru this?

I bought a used Ford F150 truck for sole purpose to use for the property that is located in Montana, can i deduct the cost of this purchase?  Can i deduct the registration costs?

thank you

[DaveF1006]

Generally, a $40k project that installs a completely new system is considered a Capital Improvement, not a routine "expense" (repair). Repairs (deductible as expenses) fix things to their previous state (e.g., replacing a $500 pressure switch). A new well is a "Betterment" or "Restoration" of a major building system, which the IRS requires you to capitalize.

You typically cannot separate the "pump" from the "well" to call it a repair, if it’s part of a brand-new system installation. The entire $40k (labor, pipes, pump, and materials) is bundled together as one asset.

The good news is that the OBBB Act of 2025 restored 100% Bonus Depreciation for 2026. A well is usually classified as a 15-year Land Improvement. Because its "useful life" is 20 years or less, it qualifies for Bonus Depreciation.  TurboTax (Premier or Home & Business versions) will walk you through this. When you enter the well under "Assets/Depreciation," it will ask for the category. Select "Land Improvements" or "Water System." The software should then ask if you want to take the "Special Depreciation Allowance" (Bonus Depreciation).

Note: If you are in a "passive loss" situation (where your expenses exceed your rental income), TurboTax will help track how much of that $40k deduction you can use now vs. carry forward to future years.

The Used Ford F-150

Since you bought this truck for the sole purpose of managing the property, you can definitely deduct costs, but there are specific rules for vehicles.  Because a Ford F-150 typically has a Gross Vehicle Weight Rating (GVWR) over 6,000 lbs, it is considered a "heavy vehicle." 

Under 2026 rules, even used vehicles qualify for 100% Bonus Depreciation or Section 179 expensing, provided they are used more than 50% for business. You could potentially write off the entire purchase price in year one.

Registration & Maintenance: Since it's 100% for the property, you can deduct the registration fees, insurance, gas, and repairs. 

Documentation is Key: The IRS is strict about "Listed Property" (vehicles). Even if you say it's 100% business use, you must keep a mileage log or record showing that no personal trips (like grocery shopping) were taken in it. If you can't prove 100% use, you can only deduct the percentage of costs related to the rental work

[Lynn_alford]

thank you very much!!  question.   i looked on my registration and title says my F150 weight is 5333# but the GWV is 6900    the title actually lists the weight as a "light vehicle"   so i assume i can use <6000# as the tax weight?

[DaveF1006 · Accepted solution]

Actually, it’s the opposite! For IRS tax purposes, the weight that matters is almost always the GVWR (Gross Vehicle Weight Rating), not the "unladen" or curb weight. Since your F-150 has a GVWR of 6,900 lbs, it is actually classified as a "Heavy Vehicle" (over 6,000 lbs) by the IRS, regardless of its 5,333 lb empty weight or the "light vehicle" label on your registration.

This is good news because your F‑150 qualifies as a >6,000‑lb lb vehicle for tax purposes. Being over the 6,000 lb GVWR threshold generally allows for much more aggressive tax deductions than a "light" vehicle (under 6,000 lbs).

Section 179 Deduction: Heavy vehicles (6,000–14,000 lbs) qualify for higher immediate expensing limits. For 2026, the limit for "heavy SUVs" is roughly $32,000, but because your F-150 has a full-sized truck bed (likely over 6 feet), it might even qualify for a full 100% deduction of the purchase price in the first year under current bonus depreciation rules.

[Lynn_alford]

wonderful     Mahalo/thanks!!