joe7230
Level 1
08-17-2021
12:20 PM
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If not can I then use Section 179? I prefer the use special depreciation at 100%
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dkh
Level 15
08-17-2021
12:22 PM
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Read thru IRS Pub 527 Residential Rental Property https://www.irs.gov/publications/p527
IRonMaN
Level 15
08-17-2021
12:36 PM
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I thought we were supposed to provide only yes or no answers. Now we are assigning homework to folks visiting here? This is like being in school again but there isn’t anybody sitting next to you, so a person can’t even cheat and look over someone’s shoulder for the answer. 😬
Slava Ukraini!
Terry53029
Level 14
08-17-2021
12:37 PM
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IRS Reg. § 1.263(a)-3h allows a small TP to expense a capital improvement if:
- $1 Million limit on unadjusted basis – note that unadjusted excludes land, land improvements, and personal property identified through a cost segregation study
- Annual expenses for repairs, maintenance, and improvements, cannot exceed the lesser of $10,000 or 2% of the building’s unadjusted basis
- Annual gross income for the landlord must be less than $10MM for the three preceding tax years.