- quote -

this is really a case-by-case analysis.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

- quote -

New windows significantly increase the value of the home. It
is something that buyers look for and consider important. A
new roof appreciably extends the useful life of the
building.

Bob Sandler

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >

<lyoncc[at]hotmail.com> wrote:

- quote -

All posts seem to take the position that this is an
improvement. I am not so sure. If they are replacing
existing windows, and do not add materially to the use to
which the property can be put, and do not appreciably extend
the useful life of the property or substantially increase
its value, they are repairs. Even replacing a roof is a
repair if it meets this test. Never mind what the IRS says,
look at the statute and relevant judicial decisions.

Having said that, keep in mind that the IRS takes the
position "never mind the statute and relevant judicial
decisions, we are the IRS and do what we want".

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Arthur Kamlet" <kamlet[at]panix.com> wrote

- quote -

The facts and circumstances may lead to a different
deduction, as seen here:

http://www.ustaxcourt.gov/InOpHistor...en.SUM.WPD.pdf

IRB 2006-39 (Sept 25, 2006) talks about expensing roof
replacement as repairs if it doesn't increase the value of
the property, and that it is a capital improvement if it
gets into replacing structural components.

Reg §1.167(a)-11
(2) Treatment of repairs.
(i) In general.
(a) Sections 162, 212, and 263 provide general rules for the
treatment of certain expenditures for the repair,
maintenance, rehabilitation or improvement of property. In
general, under those sections, expenditures which
substantially prolong the life of an asset, or are made to
increase its value or adapt it to a different use are
capital expenditures. If an expenditure is treated as a
capital expenditure under section 162, 212, or 263, it is
subject to the allowance for depreciation. On the other
hand, in general, expenditures which do not substantially
prolong the life of an asset or materially increase its
value or adapt it for a substantially different use may be
deducted as an expense in the taxable year in which paid or
incurred. Expenditures, or a series of expenditures, may
have characteristics both of deductible expenses and capital
expenditures. Other expenditures may have the
characteristics of capital expenditures, as in the case of
an "excluded addition" (as defined in subdivision (vi) of
this subparagraph). This subparagraph provides a simplified
procedure for determining whether expenditures with respect
to certain property are to be treated as deductible expenses
or capital expenditures.

I'd be looking at total costs for the roof work compared to
the cost of the building, and if there is a change from say,
asphalt shingles to a metal roof.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Bernard S <berniesa[at]pacifier.com> wrote:
- quote -

Five shingles here, ten shingles there, that's maintenance.

Replacing much or all of the shingles, that's a separate
new asset, 27.5 years.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Bernard S <berniesa[at]pacifier.com> wrote:
- quote -

Replacing the entire roof makes for a new asset.

Replacing a few shingles is a repair to the roof.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Paul Thomas, CPA" <paulthomascpapc[at]bellsouth.net> wrote:
- quote -

I am having trouble reconciling this answer to Art's
original answer.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Bill <an_ordinary_guy_158[at]hotmail.com> wrote:
- quote -

Since OP owned it "for many years" he might have already
replaced the windows and roof, and be on the second
replacement, in which case I think the remaining
depreciation on the previous set can be taken immediately.

I agree that this is unlikely, because if he'd done it
before he probably wouldn't be asking about the tax
treatment now.

Seth

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Bernard S" <berniesa[at]pacifier.com> wrote
- quote -

I doubt you have segregated costs for those items from the initial purchase,
or for that matter, from construction records.

Generally the house cost basis continues to be depreciated
over time with no change in it's initial basis because you
stripped off the shingles or replaced windows or doors.

As I recall, replacing shingles is treated as a repair
expense unless you start replacing the roof deck or other
roof structural systems.

--
Paul A. Thomas, CPA
Athens, Georgia

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

berniesa[at]pacifier.com (Bernard=A0S) posted:
- quote -

There is no adequate basis for subtracting them from the
original "total depreciation" established, so they'll just
continue as a part of that -- in addition to the separate
itemization for the _improvement_ cost.

They were, in fact, a part of the cost paid for the total
property -- which was not in any way diminished by the
improvement process.

Bill

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

"Arthur Kamlet" <kamlet[at]panix.com> wrote:
- quote -

What happens to the remaining costs of the old windows and roof?

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

<lyoncc[at]hotmail.com> wrote:

- quote -

Section 179 depreciation is not allowed on rental
properties.

Regards,

Mark

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

lyoncc[at]hotmail.com wrote:

- quote -

Here are capital improvements, and depreciable over the next
27.5 years; not 20 (which used to be the case "way back
when.")

ChEAr$,
Harlan Lunsford, EA n LA

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

lyo...[at]hotmail.com wrote:

- quote -

Capital improvements are not deducted in the year of
expenditure, but added to your cost basis and depreciated
annually. Straight line is 27.5 years. The same would apply
to your new roof.

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

<lyoncc[at]hotmail.com> wrote:

- quote -

In each case I'd consider them to be a new asset, with 27.5
year expensing.

--
ArtKamlet at a o l dot c o m Columbus OH K2PZH

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

lyoncc[at]hotmail.com posted:

- quote -

Both items you describe are significant improvements, which
should be depreciated over 27.5 years.

However, there are special, shorter depreciation periods
available if your rental property is located in the "Gulf
Opportunity Zone" and under other special conditions. Also,
if the roof were damaged -- as from a weather event -- it
might be considered a repair.

Generally, though, you're looking at 27.5 year-depreciation
whenever you're dealing with a residential rental property
"improvement."

You can read all about it, in Pub 527. It's available
online, in html. I just browsed it briefly, as I was
preparing this response, and here's a link:

http://www.irs.gov/publications/p527/ar02.html

Bill

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >

Hi all. I have owned a rental home for many years. I am
planning on installing new windows thru-out the home that
will cost appoximately $9K. Can I deduct the $9K against
the rental income all in one year, or do I have to place the
$9K on the depreciation schedule and deduct it over the 20
years? I am also planning on a new roof next tax year, so I
would have the same question for that.

Thanks in advance!!!!!!

<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ------------------------------------------------------- >