Capital expenditure not put into use

[hansdonkersloot]

Hello-

I needed to purchase an above-ground replacement pool for my rental property-  However, the contractor disappeared and the pool has not been put into use- I am afraid it may end up being unused and I will need to purchase another pool through a local pool installation service.  is the cost of the pool which was not put into service deductible as an expense since it is not being depreciated anymore?

thanks.

[LindaB1993]

The swimming pool would not qualify as an expense write-off.  You still would depreciate this as a capital improvement in the year paid , although it is not yet complete.  In any following year, additional expenditures are added to the pool cost and also depreciated. 

The cost of maintaining and repairing your rental property are fully deductible. However, don't confuse repairs with improvements. Repairs include fixing leaks, repairing a broken window or repainting a room. Improvements increase the value of the property and cannot be deducted the year you pay for them. Examples of improvements are a new air-conditioning unit, insulation projects or a swimming pool. What you can do is deduct the cost of improvements by depreciating their value over the rental property's life expectancy.

[Anonymous]

I'm a little confused.  if the original replacement pool was never installed it was never placed into service and should not have been depreciated.    you'll have to explain why you can't get a contractor to install it.  if you're implying that it was never delivered  and you have been unable to get a refund for amounts paid. In such a situation, you would have a write off.