 20% LL tax; capital imp. (by Wilma [PA]) Feb 22, 2019 12:58 PM
 20% LL tax; capital imp. (by TonyT [PA]) Feb 22, 2019 1:43 PM
20% LL tax; capital imp. (by Busy [WI]) Feb 22, 2019 2:06 PM
20% LL tax; capital imp. (by Wilma [PA]) Feb 22, 2019 2:41 PM
20% LL tax; capital imp. (by Busy [WI]) Feb 22, 2019 3:07 PM
20% LL tax; capital imp. (by Ed [PA]) Feb 22, 2019 6:58 PM
20% LL tax; capital imp. (by JB [OR]) Feb 22, 2019 10:51 PM
20% LL tax; capital imp. (by Robin [WI]) Feb 23, 2019 5:17 AM
20% LL tax; capital imp. (by myob [GA]) Feb 23, 2019 5:25 AM
20% LL tax; capital imp. (by Scott [IN]) Feb 23, 2019 8:07 AM
20% LL tax; capital imp. (by Kim [TX]) Feb 25, 2019 10:36 AM
20% LL tax; capital imp. (by Wilma [PA]) Feb 25, 2019 10:40 AM
20% LL tax; capital imp. (by Wilma [PA]) Posted on: Feb 22, 2019 12:58 PM
Message:
During the discussion posted on the 20th by TonyT(PA), I picked up the term "The term rental services does not include... planning, managing, or constructing LONG-TERM CAPITAL IMPROVEMENTS; ...
While I will run this by a CPA, I figured that I'd ask if anyone could evaluate my situation. We had a n'orester tear down at a rental 5 of 10 roadside evergreens, and the other 5 were damaged badly enough to have to take down completely. We did all the work ourselves (because the tree guys, due to huge numbers of trees down, had jacked their prices up by a factor of about 150%) to clean up the trees. We then had to bring in soil, create a small berm, plant bushes, put in grass seed, etc., all to restore that area (if we'd hired the work, it would have cost us most of our profit for the year; we're "retired" and small potatoes, so that would have been a hit). The job took us easily over 250 hours (yup, I have a log), but cost about $800, compared to around $5,000, if hired out.
So - is this a capital improvement, as it created a different type of landscaping from what was originally there? Or a restoration? My gut feeling is restoration, as we couldn't just leave the 10 gaping wounds along the side of the property. But if anyone has had a similar experience, I'd be glad to hear it!
--71.175.xxx.xxx |
20% LL tax; capital imp. (by TonyT [PA]) Posted on: Feb 22, 2019 1:43 PM
Message:
I'm not an expert, but I see that as a repair. I'm the type that would file my taxes considering it a repair and let the IRS tell me otherwise if it's not a repair. The tax code is so egregiously complex, I don't think it's out of line to make a judgment that it's a repair. --73.52.xx.xxx |
20% LL tax; capital imp. (by Busy [WI]) Posted on: Feb 22, 2019 2:06 PM
Message:
Ditto Tony.
Had that weather not damaged those trees, you wouldn’t have done anything beyond maintenance. Sounds like this was just a larger maintenance year. That’s my thoughts.
However, not to throw a log at you, but this damage was to trees by the house, right? As in, if the house were being built, repaired, torn down, those trees would be impacted? Trees out yonder, well out of reach of the house go with the depreciation of the land. And, land doesn’t get depreciated. So, those trees were right by the house, yes?
Doesn’t mean that trees out in the hinter-lands aren’t valuable on a large lot. As someone who values landscaping for the beauty, privacy, and wind/ sun protection, I definitely value trees, berms, of all sorts. And, I don’t think an IRS agent will come and measure. --70.92.xxx.xxx |
20% LL tax; capital imp. (by Wilma [PA]) Posted on: Feb 22, 2019 2:41 PM
Message:
Nope, no damages to the house. Just trees down, side yard torn up.
And, this question may be moot. Someone posted today on the original posting from TonyT(PA) on the 20th, and said that I have to be a business, filing Schedule C. Nope, just schedule E, I'm small potatoes. But - I'm checking with a CPA on that, but suspecting that I'm outta luck with that nice 20% reduction to profit. --71.175.xxx.xxx |
20% LL tax; capital imp. (by Busy [WI]) Posted on: Feb 22, 2019 3:07 PM
Message:
Turbo tax asked me about QBI in regards to schedule E. It is possible to be considered a business and use schedule E. Husband hasn’t finished his portion of taxes, so we haven’t printed it yet. I’ll be looking at that soon.
I may end up getting a letter from my Uncle Sam, next year maybe we will have learned.
Whole darn thing is made complicated on purpose! --70.92.xxx.xxx |
20% LL tax; capital imp. (by Ed [PA]) Posted on: Feb 22, 2019 6:58 PM
Message:
I wouldn't think twice calling that a repair. IRS wouldn't audit you for that and certainly wouldn't go to the house to determine if the trees were 'close enough'. --71.112.xxx.xxx |
20% LL tax; capital imp. (by JB [OR]) Posted on: Feb 22, 2019 10:51 PM
Message:
Sounds close enough to a repair for me. BTW Wilma, you earned yourself $16.80/hr for your efforts. Not bad for a little extra retirement cushion. --24.20.xxx.xxx |
20% LL tax; capital imp. (by Robin [WI]) Posted on: Feb 23, 2019 5:17 AM
Message:
And with federal, state, and local income taxes, to get $5000 in the bank you'd have to earn double that. So nice job! --204.210.xxx.xxx |
20% LL tax; capital imp. (by myob [GA]) Posted on: Feb 23, 2019 5:25 AM
Message:
you didn't mention if you got an insurance pay out? --99.103.xxx.xxx |
20% LL tax; capital imp. (by Scott [IN]) Posted on: Feb 23, 2019 8:07 AM
Message:
Wilma, I'm small potatoes, schedule E as well. My accountant said I qualify for the 199A deduction. --107.141.xx.xxx |
20% LL tax; capital imp. (by Kim [TX]) Posted on: Feb 25, 2019 10:36 AM
Message:
Yes, Schedule E filers qualify. --23.30.xx.xxx |
20% LL tax; capital imp. (by Wilma [PA]) Posted on: Feb 25, 2019 10:40 AM
Message:
myob - No insurance payout - deductible too high.
I got a thumbs up from a CPA, too, so I'm happily taking that! --71.175.xxx.xx |
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