Depreciation and expenses

[Mike029]

I've waterproofed my rental apartment.  This digging a trench around the back bedroom.  The cost was $6300.  Relocation of my tenant during construction was an additional $1500.  Retiling the floor, relacing wallboard and painting was an additional $4500.

Are all of these costs depreciable assets or can I expense the relocation costs or the painting/tiling/wallboard replacement?

And is there any way to accelerate the 27.r years of deprecation?

Thanks

[DaveF1006]

It depends. According to the following Turbo Tax link, the tile and the wallboard(including the painting would be considered a capital asset. If each activity is under $2500 however, you could expense by using the De Minimus Harbor rule that will allow you to expense capitalized assets. Please see this IRS link for more details.

You said you dug a trench around the back bedroom. Is that a permanent trench or were there additional material placed around the bedroom to waterproof it. The reason I ask because it is hard for me to envision a permanent, open trench. Let me know more information about the nature of the trench so i can advise you whether to expense it or capitalize it.

Relocation expenses spent to relocate your client is definitely an expense.  All capital assets listed as assets associated with this rental property are depreciated at 27.5 years.

[Mike029]

Thanks for the reply.  The trench is actually a channel to the basement apartment's sump pump.  It required jackhammers to put it in. This prevents water from seeping up in the middle of the floor.  It was concreted over hence the need for tile and wall board.  Guess that sounds like a capital asset.  

[DaveF1006]

Yes, thank you. The total cost of the trench including the concrete and sump pump is definitely a capital asset to be depreciated over 27.5 years.