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?

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

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1 Best answer

Expert Alumni

Jun 4, 2019 2:41:13 PM

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

Expert Alumni

Jun 4, 2019 2:41:13 PM

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