Why sign in to the Community?

  • Submit a question
  • Check your notifications
Sign in to the Community or Sign in to TurboTax and start working on your taxes
Level 3
posted Jan 15, 2024 4:12:13 PM

Replacement of main sewer line on rental property

I had to replace the main sewer line on a rental property in California and I'm not clear on whether this is considered an improvement or repair. It was about $14,000 dollars. I've seen a couple of other posts on this question, but the responses were somewhat conflicting. I want to make sure I record it properly. It appears it should be recorded as a Land improvement asset for depreciation, but perhaps there is a still a one-time depreciation allowance that would allow me to expense it all at once?

1 2 6370
2 Replies
Level 15
Jan 15, 2024 6:31:57 PM

The sewer line replacement costs is classified as a land improvement and depreciated over 15 years under the MACRS GDS depreciation schedule. See IRS Pub 946 at https://www.irs.gov/pub/irs-pdf/p946.pdf on page 97, item 00.3 - Land Improvements.

 

Level 3
Jan 16, 2024 6:52:13 AM

Greatly appreciate the response - thank you!