 Rental Expense (by Bill [PA]) Sep 18, 2018 6:20 PM
 Rental Expense (by Dan [NY]) Sep 18, 2018 6:38 PM
Rental Expense (by BRAD 20,000 [IN]) Sep 18, 2018 7:53 PM
Rental Expense (by Jim in O C [CA]) Sep 18, 2018 8:10 PM
Rental Expense (by fred [CA]) Sep 18, 2018 8:57 PM
Rental Expense (by AllyM [NJ]) Sep 19, 2018 5:13 AM
Rental Expense (by myob [GA]) Sep 19, 2018 7:32 AM
Rental Expense (by Kim [TX]) Sep 19, 2018 10:54 AM
Rental Expense (by Bill [PA]) Sep 19, 2018 7:46 PM
Rental Expense (by moby [IN]) Sep 20, 2018 4:34 AM
Rental Expense (by don [PA]) Sep 21, 2018 5:12 PM
Rental Expense (by don [PA]) Sep 21, 2018 5:15 PM
Rental Expense (by Bill [PA]) Sep 22, 2018 7:29 PM
Rental Expense (by Bill [PA]) Posted on: Sep 18, 2018 6:20 PM
Message:
New at this....just had a Hot Water heater installed in our rental unit. Cost in total is $1,260. We're making payments, do we only expense off the amount paid this year in payments for our 2018 taxes?
Thanks, Bill --137.103.x.x |
Rental Expense (by Dan [NY]) Posted on: Sep 18, 2018 6:38 PM
Message:
It sounds like you borrowed money to makethe purchase The water heater should be depreciated. It is considered part of the Plumbing System, which is depreciated over 27.5 years. If it needs to be replaced before 27.5 years, then you would get the rest of the deduction when it is disposed of.
There is De Minis Safe Harbor deduction that may allow it to be expesed in the year aquiired. --68.192.xxx.xxx |
Rental Expense (by BRAD 20,000 [IN]) Posted on: Sep 18, 2018 7:53 PM
Message:
Bill,
Yikes!
Locally $385 at Lowes, $50 for new fittings, $270 for professional insatllation by Lowes.
BRAD --68.50.xxx.xxx |
Rental Expense (by Jim in O C [CA]) Posted on: Sep 18, 2018 8:10 PM
Message:
No you can expense the total cost on your 2018 taxes. The fact you were making payments does not enter in to the equation.
Big ticket items like a roof or a re-pipe are expensed over 27.5 years. If you’re new at this landlord game use CPA who is knowledgeable on rental property. --75.22.xx.xxx |
Rental Expense (by fred [CA]) Posted on: Sep 18, 2018 8:57 PM
Message:
Claim it as this year's expense in full.
--99.59.x.xxx |
Rental Expense (by AllyM [NJ]) Posted on: Sep 19, 2018 5:13 AM
Message:
I would recheck the amount of time to depreciate a water heater since they don't last that long. There may be something in the new tax rules that lets people who pay for something in one year just expense it. Since there are new rules people should look for an expert. I have a CPA firm do mine and they have saved me thousands. --73.178.xxx.xx |
Rental Expense (by myob [GA]) Posted on: Sep 19, 2018 7:32 AM
Message:
Use the Chris Columbus theory on this purchase. Take the whole deduction-- take the CHANCE-- its gray and the IRS loves gray.
My concern, as others, is the loan needed to do this-- 1260.00 for real? we pay 400 for heater and MM does for 1.5 hr.s in pay-- 45.00. fittings-- shark bites 50.00. --99.103.xxx.xxx |
Rental Expense (by Kim [TX]) Posted on: Sep 19, 2018 10:54 AM
Message:
I'm thinking you hired a plumber to buy and install the water heater... --23.30.xx.xxx |
Rental Expense (by Bill [PA]) Posted on: Sep 19, 2018 7:46 PM
Message:
This cost also included a Sunday service call to be sure no propane was leaking into the house (it wasn't) but had to be checked. And propane water heaters at Lowe's start at $589. The propane company did the install on Monday...and I too was surprised at the cost. I didn't borrow money, but the company let's you make "no interest payments" for up to 18 months. (Well we know where the interest is!) Based on the responses so far, I will expense the total as a repair, as it was a one for one replacement....not a "betterment". Been doing some reading...the rules for depreciation makes one NOT want to do it. Take the chance. But if I did depreciate it I think it'd be 5 years, not 27.5. --137.103.x.x |
Rental Expense (by moby [IN]) Posted on: Sep 20, 2018 4:34 AM
Message:
NO INTEREST? oh you're paying interest --68.60.xxx.xx |
Rental Expense (by don [PA]) Posted on: Sep 21, 2018 5:12 PM
Message:
Repairs are expensed in one year. You did not make a repair. You replaced an entire appliance. You have to depreciate it over a number of years--what that number is, you'd have to ask a cpa. --73.141.xxx.xxx |
Rental Expense (by don [PA]) Posted on: Sep 21, 2018 5:15 PM
Message:
you cannot deduct costs which you have not yet paid. this is an interesting issue, you have amortization schedule to look at but also your yearly payment schedule. i don't know which prevails. --73.141.xxx.xxx |
Rental Expense (by Bill [PA]) Posted on: Sep 22, 2018 7:29 PM
Message:
Obviously there is a range of opinions, I'll need to find a local CPA and get a judgement. I mean could this be considered maintenance if not a repair? And I need to research the De Minis Safe Harbor thing some as well. --137.103.x.x |
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