topic Does building asset depreciation have to be spread over 27.5 years? in Investors & landlords

Does building asset depreciation have to be spread over 27.5 years?

srfandtrf — Thu, 06 Jun 2019 09:01:26 GMT

I have a business home office. Last year we spent $30,000.00 on all new windows. Does the depreciation HAVE to be spread over the 27.5 years? We owe a LOT in taxes this year and was wondering if that time could be shortened. Thank you!

$30,000 just on the windows for your office? Or for the...

SweetieJean — Thu, 06 Jun 2019 09:01:27 GMT

$30,000 just on the windows for your office? Or for the entire home?

Entire home. 25% counts to the office in my circumstance.

srfandtrf — Thu, 06 Jun 2019 09:01:29 GMT

Entire home. 25% counts to the office in my circumstance.

It is 39 years, by the way, not 27.5.

Zbucklyo — Thu, 06 Jun 2019 09:01:30 GMT

It is 39 years, by the way, not 27.5.

39 years is for a commercial building, OP mentions home o...

SweetieJean — Thu, 06 Jun 2019 09:01:34 GMT

39 years is for a commercial building, OP mentions home office.

Home offices are depreciated over 39 years. Non-residenti...

Zbucklyo — Thu, 06 Jun 2019 09:01:36 GMT

Home offices are depreciated over 39 years. Non-residential real property.

<a rel="nofollow" target="_blank" href="https://www.irs.gov/publications/p587#en_US_2018_publink1000226357">https://www.irs.gov/publications/p587#en_US_2018_publink1000226357</a>

Yes, the building asset will have to be depreciated. The...

Leonard — Thu, 06 Jun 2019 09:01:37 GMT

Yes, the building asset will have to be depreciated. The $30,000 spent on new windows is a capital improvement to the property and is added to the adjusted cost basis of your home and is not a deductible expense. You will use the new adjusted cost basis when you are calculating your home office deduction.