"irv a" <iabelman[at]nyc.rr.com> wrote

- quote -

Unless you have a better reason, divide the expense 50/50
between personal (not deductible) and rental (deductible).

The only reasons I see to make the split other than 50/50
would be based on the number of bathrooms/kitchens, etc.

--
Snowmen fall from heaven unassembled.
-------------
Paul A. Thomas, CPA
taxman at negia.net

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

iabelman[at]nyc.rr.com (irv a) wrote:

- quote -

Split the expense the same as you split the living spaces,
and add to the cost basis of the personal and rental
properties. There is no immediate tax benefit for capital
improvements.

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

- quote -

Whatever percentage is related to the rental portion of your
property, classified as an improvement, is depreciable over
a period of time. Repairs, the extent they are applicable
to the rental portion, are deductible as repairs to the
rental. The balance is added to your basis in the property.

The depreciation period, for such property, under ADS and
GDS is 20 years. You generally deduct the cost of repairing
business property in the same way as any other business
property. However, if a repair or replacement increases the
value of your property, makes it more useful, or lengthens
its life, you must treat it as an improvement and depreciate
it.

You'll want to check with other jurisdictions (State,
Municipality) to see if any credits are available for this
type of improvement/ repair.

"Jack" - John H. Fisher - TaxService[at]aol.com
Philadelphia, Pa - Atlantic City, NJ - West Wildwood, NJ
My Newsgroups & Boards at: http://members.aol.com/TaxService/index.html

Where Ignorance is bliss, 'tis folly to be wise!=

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->

We live on 2 floors of a 4 story house and have one 2 story
rental. We recently incurred a $17,000 sewer repair expense
(installation of a new sewer to the city sewer line). How
can we maximize the tax benefit on this expense?

<< -------------------------------------------------> << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org > << ------------------------------------------------->