Fence for a rental property

[bmshah1]

We are in the process of installing a fence for our rental property. The estimated cost is around $20,000. I understand that I will have to depreciate the cost of the fence but my question is which part of the expense I should be depreciating vs. expensing it out. For example I paid for labor to install the fence and I paid for material. The labor was the biggest expense at around 12k whereas the material cost was 8k. Which portion of these two do I depreciate or do I depreciate the whole amount?

[DavidD66 · Accepted solution]

You add all the costs of the fence together and that is the cost of the fence.  That is also the amount of the asset that you set up and depreciate.