topic Can you deduct special assessments on a rental property? in Investors & landlords

Can you deduct special assessments on a rental property?

jamesrath1970 — Wed, 05 Jun 2019 22:57:17 GMT

We have a single family home that we rent out all year. Can we deduct the city's special assessments?

If you rent your home to others, you can deduct depreciat...

Critter — Wed, 05 Jun 2019 22:57:18 GMT

If you rent your home to others, you can deduct depreciation, repairs, upkeep, dues, interest and taxes, and assessments for the care of the common parts of the structure. You cannot deduct special assessments you pay for improvements. Improvements must be depreciated.

No. You depreciate it. Enter it as a new asset

Hal_Al — Wed, 05 Jun 2019 22:57:20 GMT

No. You depreciate it. Enter it as a new asset

Re: If you rent your home to others, you can deduct depreciat...

jcorrigan10 — Sat, 12 Oct 2019 17:44:38 GMT

Is replacement of EIFS, Railings and windows on a 36 year old rental condominium building expansible or depreciation?

Re: If you rent your home to others, you can deduct depreciat...

Carl — Sat, 12 Oct 2019 18:43:04 GMT

It's depreciated, because it meets both requirements to be classified as a property improvement.

Property Improvement.

Property improvements are expenses you incur that add value to the property. Expenses for this are entered in the Assets/Depreciation section and depreciated over time. Property improvements can be done at any time after your initial purchase of the property. It does not matter if it was your residence or a rental at the time of the improvement. It still adds value to the property.

To be classified as a property improvement, two criteria must be met:

1) The improvement must become "a material part of" the property. For example, remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet. Replacing that old Central Air unit.

2) The improvement must add "real" value to the property. In other words, when the property is appraised by a qualified, certified, licensed property appraiser, he will appraise it at a higher value, than he would have without the improvements.