If a Landscape company added a dump bed to a truck for 11,000.00. How is this treated since it is part of the truck now?

[HelenaC · Accepted solution]

If you improve depreciable property, you must treat the improvement as separate depreciable property. 

•  Per IRS Publication 946 Chapter 1 Page 12 Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the property, or adapts it to a new or different use. See section 1.263(a)-3 of the regulations. 

• You generally deduct the cost of repairing business property in the same way as any other business expense. However, if the cost is for a betterment to the property, to restore the property, or to adapt the property to a new or different use, you must treat it as an improvement and depreciate it. 

See MACRS Asset Life Table

See the screenshot below.

Related information:

• Who determines the useful life of a business asset?