Discussion Archives:Depreciation of Vinyl Siding
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Discussion Forum Index --> Tax Questions --> Depreciation of Vinyl Siding
BARBOLEARY (talk|edits) said: | 2 January 2007 |
| Has anyone depreciated vinyl siding for a rental property? The house is brick, but the trim at the roof line and around the windows was wood. It was rotted and needed to be replaced. Is this depreciable over 27.5 years or a lesser time? | |
| 2 January 2007 | |
Per IRS Pub -- Repairs. A repair keeps your property in good operating condition. It does not materially add to the value of your property or substantially prolong its life. Repainting your property inside or out, fixing gutters or floors, fixing leaks, plastering, and replacing broken windows are examples of repairs.
If you make repairs as part of an extensive remodeling or restoration of your property, the whole job is an improvement. . What percentage is this expenses in relation to the total value of structure? I would write off as a repair in the year paid. | |
BARBOLEARY (talk|edits) said: | 3 January 2007 |
| The percentage is a little less than 2%. | |
| 4 January 2007 | |
| Write it off as a repair. 2% does not seem extensive remodeling. | |
| January 4, 2007 | |
| I would want to know the total cost of the vinyl siding and compare it with the annual rental receipts before deciding to write off the expense as a repair. To me, vinyl siding is a major improvement and should be depreciated.
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| 4 January 2007 | |
| The house is brick. We are only taking about some trim. Too often we get caught up in the dollar amounts ($1000 to $10,000 ) and use that as an amount that might alert the IRS as being too high to write off. IRS is not at all concerned. | |
| January 4, 2007 | |
| Oops, sorry, I must have read the question too fast and missed the part about the house being brick and the siding was only the trim. You're right. | |
| 7 January 2007 | |
| Can you tell me...we had $4,900 of siding installed in July on a house we paid $145,000 for in January of 2006. Depreciate for 27.5 years? Or can I use 3-5 years? Thanks! | |
| 7 January 2007 | |
| Either write off as repairs or depreciate for 27.5 years. There isn't an in-between. | |
| January 8, 2007 | |
| If I was doing the tax return, I'd depreciate the $4,900 over 27.5 years. Vinyl siding is expected to last longer than one year, and it is my thought that almost any auditor would change this as an expense to a capital asset. This is in response to Mrrex11's question. | |
Rgtaxservice (talk|edits) said: | 12 January 2007 |
| Mrrex11 - You didn't specify if the house was a rental. If it is a rental, then what you have been told is correct. If you are talking about your personal residence, then those improvements would be added to the basis. | |
| 12 January 2007 | |
| It is a rental. Thanks RG! What a neat place this taxalmanac! | |
| 12 January 2007 | |
| Depreciate for 27.5 years. If insulation was used, you may be eligible for the energy tax credit. | |
