Should I declare a utility shed costing $1,986.00 as an expense or do I need to add it to value of home for depreciation on my rental property?

[lilamon]

Purchased a utility shed for $1,989.  Should I ad it to cost basis for deprecation or can I expense it?

[AlanT · Accepted solution]

The purchase of the utility shed would be considered a capital improvement.  Therefore, you must add it to cost basis and depreciate.