Bill wrote:
- quote -

Aye, Bill. I knew what ye meant.

Scotch ChEAr$,
Harlan

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hlunsford[at]bellsouth.net (Harlan) wrote:
- quote -

Hi, Harlan. I wrote "Most" and "should be" because there
might have been some items which could be expensed directly.
And "some items might be subject to ....accellerated ..."
referred to the MACRS Recovery Period options for such items
as carpets and furniture. (Per Pub 17, page 77 in 2004
issue.)

- quote -

Amen, indeed. If I was guilty of any looseness in my own
specifics, I felt my overriding advice would lead the poster
to a pro, who would (hopefully) provide definitive
directions for the full situation, as revealed by the TP.

Cheers, Bill

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Thanks very much.

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Bill wrote:
- quote -

Corection; not "should be' but "will be". Not sure what
you mean by "some items might be subject to
.......accelerated...." for he is asking about rehab
expenditures.

- quote -

Amen!

ChEAr$,
Harlan Lunsford, EA n LA

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"peltaz" <bkputnam2[at]msn-dot-com.no-spam.invalid> wrote:

- quote -

As a general rule, renovation costs are added to basis of
the house and depreciated over 27.5 years. If you have to
make improvements to even rent it, you likely would be
adding all the cost to the asset, not use it as a current
year expense.

Mike Lewis, CPA

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Expenses for improvements to the unit are added to your
depreciable basis in this rental property. When you place
the property in service (if it is a residential unit),
you'll depreciate your costs (basis) over a period of 27.5
years.

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bkputnam2[at]msn-dot-com.no-spam.invalid (peltaz) posted:

- quote -

Most rehabilitation or remodel expenses should be
capitalized, and would be depreciated over 27.5 years
(straight line method). Some items might be subject to
accelerated depreciation, if you wish.

I strongly advise you consult a tax professional before you
initiate this project. For a taste of the complexities, you
can read Pub 527 and scan Schedule E and Form 4562.

Bill

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I bought a home with a guest house last year. The guest
house was used by the previous occupant as a workshop and is
in such poor shape so as to be uninhabitable. My question
is what expenses if any are deductible in getting the guest
house in to some kind of shape to where it can be rented.
Thanks.

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