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 12Improvement 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.
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 12Improvement 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.
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