depreciation on rental cabinets

[OldJack]

>> I am firmly in the repair column.<<

I agree that it is a repair that does not really increase or improve the life of the building as it is only maintaining the building.

[joanmcq]

I love the fact that I started a 2 page discussion. new floor (lino, not underflooring), new stove (5 year dep, yay!). new cabinets, since old ones unusable. new window, old one deteriorated to point of necessary replacement. New counters. Rent did not go up. That kinds stuff section 8 would require done, or they wouldn't approve the rental (but this isn't section 8). Client said they were afraid someone would get hurt because of deterioration.

My kitchen is 70 years old and the cabinets are fine (and very simple, very cheap construction, but hand made by previous owner). Any change would be capital improvement. some of the windows in my house were held together with duct tape, but we replaced them with double hangers we found at a garage sale (same for same) so repair. I'm wondering for the one window that is still boarded up, and has been since the house was bought. Is putting a window in an improvement or repair? Bought the house with a missing window. The one apartment building I had, we had to rip out cabinets, counter and sink etc, to do repairs, and it made no sense to put back originals because they were so deteriorated. I didn't have to make the call at that point because it was all an expense of sale, but I think that is close to what was done in the case under discussion.

Arghhh! at least the client is happy I am spending time on this. And this is what we do off season, quibble enlessly on minute points of tax law. If these guys had come in in march, they would've gotten depreciation 27.5, NEXT! but because they came in so late they went on extension, I have time to research....

[kcjenkins]

Well, if it's that little, in relation to the rent, I'd have no problem at all with expensing this repair. I would not even bother the client with questions, frankly, for that one.

And I know what you mean about renter complaints. That's what got me out of being a landlord.

[RoyDaleOne]

http://www.irs.gov/businesses/article/0,,id=134671,00.html

http://www.irs.gov/businesses/article/0,,id=134122,00.html

For your information. Check out what is and what is not Section 1245.

Note that dropped ceilings is 1245 property, even if attached to the building.

The reasons for one classification or the other is not easy to see.

Just as the reason it is a repair or not is somethings difficult to see.

[RoyDaleOne]

http://www.irs.gov/irb/2006-39_IRB/ar13.html

FYI.