me-carney
Level 3
12-07-2019
07:13 AM
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IRonMaN
Level 15
12-07-2019
07:13 AM
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That sounds kinda like saying the installation of an 8 track player was a substantial improvement in a 1975 Vega. On second thought, that's a bad analogy - the 8 track player was a big improvement in the Vega. But I'm still going to go with "no" on the speaker system.
Slava Ukraini!
Just-Lisa-Now-
Level 15
12-07-2019
07:13 AM
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Even if its wired into the house with speakers installed in the walls, ceilings? (I saw them do this with a fancy house on one of those home remodeling shows!)
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♪♫•*¨*•.¸¸♥Lisa♥¸¸.•*¨*•♫♪
IRonMaN
Level 15
12-07-2019
07:13 AM
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I don't know how fancy the house is that we are talking about or whether the speakers are on shelves or in the wall, but I still would vote no. The speakers might be an "improvement" but they don't sound like they have risen to that "substantial" level to me.
Slava Ukraini!
Slava Ukraini!
TaxGuyBill
Level 15
12-07-2019
07:13 AM
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If it would add to the Basis of the property it would be a "Substantial Improvement". Or another way to look at it, if it was a rental property, would it be depreciated over 27.5 years?
https://www.irs.gov/publications/p936#en_US_2018_publink1000230004
Based on that, I would lean towards that a built-in system may qualify. I would view it as comparable to light fixtures or a security system, which are §1250 property
https://www.irs.gov/publications/p936#en_US_2018_publink1000230004
Based on that, I would lean towards that a built-in system may qualify. I would view it as comparable to light fixtures or a security system, which are §1250 property
abctax55
Level 15
12-07-2019
07:14 AM
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I have a client who installs high end Dolby "systems" in multi-million dollar homes. Meaning very "substantial" in total dollars; maybe not as a percentage of FMV of home.
I can't say I've run across using a HELOC to pay for it & deducting the interest; but the whole idea feels wrong (which is a great technical position to take when preparing a return
I can't say I've run across using a HELOC to pay for it & deducting the interest; but the whole idea feels wrong (which is a great technical position to take when preparing a return
"*******Tax software is no substitute for a professional tax preparer*******
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