Posted by Briton (IN) on January 12, 2004 at 20:50:30:
If the new lines did not cost too much, and you need the deduction you could put it in repairs and maint. The IRS would LIKE you to depriciate it. But you could prolly be able to go either way. Talk to your accountant 1st though. Hope this helps, Briton (IN)
MHP Park Sewer Depreciation - Posted by Mark (SDCA)
Posted by Mark (SDCA) on January 12, 2004 at 13:04:09:
I replaced (not fixed) 2 sewer lines in calendar year 2003. I am trying to figure out what the depreciation schedule is for this.
Form 4562 does list municipal sewer lines as 20 year property. Does this apply eventhough the ones I put in are private not city lines?
I am hard pressed to believe that these lines are going to last 20 years although it WOULD be a relief if they did.
Thanks,
Mark
Re: MHP Park Sewer Depreciation - Posted by Charles K Clarkson (TX)
Posted by Charles K Clarkson (TX) on January 12, 2004 at 23:16:07:
IANAA, but: I think a small business can deduct the first $50,000 (I didn’t verify the figure) of normally depreciable purchases. Like others have mentioned, you should to chack with an accountant. If you have been separating your park depreciation in sections (ie: sewer, water, common areas, etc.) you may be able to accelerate the depreciation for that section also.
HTH,
Charles
IANAA - I am not an accountant.
what I would do - Posted by Steve-WA
Posted by Steve-WA on January 12, 2004 at 22:12:27:
expense the whole darn thing.
No, really, that is what I would do. That’s why it’s a good thing I use an accountant!
Mark, I would recommend that you contact John Hyre - might be tough to reach him, but I am pretty sure he would give you the best answer, since he is a CRE investor himself. Unfortunately, he is no longer affiliated with this site, but you should be able to get his email off an older post, or check his own site: realestatetaxlaw dotcom
Please post what you find out.