Solved: 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?
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest second stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
New Member

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?

 
1 Best answer

Accepted Solutions
New Member

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?

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 the screenshot below.

Related information:

View solution in original post

1 Reply
New Member

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?

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 the screenshot below.

Related information:

View solution in original post

Dynamic Ads
v
Privacy Settings