2007-02-02 12:56:20 · 4 answers · asked by Bill P 1 in Business & Finance ➔ Taxes ➔ United States
You have to capitalize and depreciate improvements. The life depends upon the item. If you add a room, it's the same as the 27 1/2 year staight line for the property. Other improvements depend upon their depreciable life.
2007-02-02 13:01:43 · answer #1 · answered by Bostonian In MO 7 · 0⤊ 0⤋
If you mean how much of your expenses for rental property that is actually generating income can be written off, generally up to $25,000. If your property was vacant and not generating income while improvements were made, the value of the improvements will most likely have to be added to the basis of the property except for mortgage interest and property taxes which may be deducted on Schedule A. This is a complicated subject and should be referred to an expert at tax time.
2007-02-02 21:10:17 · answer #2 · answered by Lilly 3 · 0⤊ 1⤋
It depends on what tax bracket you or your company is in. The writeoff is affected by the deduction of the bracket's taxation. So if you are in the 28% tax bracket with your income or in the case of a business, your business's bracket, that is what the writeoff is equivalent to.
2007-02-02 21:01:37 · answer #3 · answered by Anonymous · 0⤊ 2⤋
Repairs can be expensed, but capital improvements should be depreciated.
2007-02-02 21:03:56 · answer #4 · answered by crazydave 7 · 0⤊ 1⤋