Parking Spot Depreciation?

[ETax847]

Client rents out a parking spot in a condo building.  He only owns the parking spot.  What type of depreciation do I use for this type of rental?

Thanks!

[Roberts]

Since it's a condo - is he personally responsible for any of the upkeep versus what the association would be responsible for handling?

I'd maybe attribute part of the association fee and not depreciate. It literally is LAND and he pays a monthly fee to cover maintenance and repairs I'm guessing.

[ETax847]

My initial thought is to treat it as 39 year non residential real estate, but Roberts, I agree with you.

[David W Ristau CPA]

Seems to me that unless the parking lot slot is a ground level, dirt only spot, there is some sort of land improvement, i.e. concrete or asphalt, that has a cost or FMV with a known starting date, that should be accounted for and depreciated. I disagree with no depreciation concept.

[Abby Normal]

Seems like an intangible to me.

[ETax847]

I think it's land, because the property tax assessment treats it that way. So no depreciation was my thought

[Lee B]

If it has a property tax assessment then you probably have two components, Land and Land Improvements, one non depreciable and one depreciable.

[Abby Normal]

Show me his title to the land. If he has no title, then he has an intangible right to access that land.

[Max W]

If it is an outdoor paved parking space, is it worth bothering with.?

Here are some national averages for a Two car driveway, so you are looking at maybe $500 (asphalt) $1500 (concrete), unless it is in CA where you can probably double that.  So for 15 yr dep. concrete would be $100/yr

https://www.fixr.com/costs/concrete-driveway-paving 

[Lee B]

7 and 1/2 years ago I paid $5,000 to replace an old driveway with a nicer than average new driveway.

Now the cost would be close to 10,000.

[Max W]

1 hour ago, cbslee said:

7 and 1/2 years ago I paid $5,000 to replace an old driveway with a nicer than average new driveway.

Now the cost would be close to 10,000.

You are comparing apples to oranges.  You had a customized residential job, which would be on the high end of the scale.  A parking lot is going to be on the lowest end of the scale.  

[Hahn1040]

I have a family member who owns a condo in downtown Chicago.  His two parking spaces each receive a separate tax bill.  I should ask him if there is a breakdown of land vs, improvements.  The parking garage is in the lower levels of a high-rise building,  Certainly there is much more to it than just a piece of land: the structure of the parking garage.  For your condo owner, it is probably similar.  Ask what the tax bill shows.