Depreciation asset life?

[Catherine]

Client is a homeowner's association. They had their driveways seal-coated for several thousand dollars. It should last several (but undetermined) years. Anyone have an idea on how long a life this should have? My Magic-8 ball said, "answer hazy, ask again later".

Catherine

[schirallicpa]

I have one of those magic 8 balls too!!

Comes in real handy sometimes.

Wouldn't the driveway sealant fall under Land Imprvs, GDS 15, ADS 20.

[Gail in Virginia]

It probably does fall under that heading, but realistically it won't last more than 5 in a state with weather. We have done ours ourselves and needed to redo it within a year, or had it professionally done with not much better results. However, real life has very little to do with taxes.

[Margaret CPA in OH]

I was thinking orginally the improvements, too, but decided that the initial construction of the driveway and paving would be the land improvement. It seems to me that resealing would either be a repair (yes, it would extend the life but not for 15 years) or no class life of 7 years. That seemed more realistic, at least to me.

[kcjenkins]

Margaret is right, the original paving would be a land improvement, but the repaving would be a repair, and deductible each time it is done. This sort of repair seldom lasts more than a year or two, in my experience.

[Catherine]

Thanks to all!

Catherine