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Roof replacement where customer only paid deductible

Level 1

Looking for some insight. I have a client who had a roof replaced due to storm damage on his rental property. He paid $1,000 deductible and insurance covered the rest. 

Do I need to depreciate the roof using the cost of his deductible or is this an expense?

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Level 11

Sounds like it to me too.  I generally recommend that the taxpayer make the safe harbor election for small taxpayers when available, and then take the blank stare on their face as consent to do so.  Then we don't have to spend any time at the BAR trying to figure out if this was a repair or somehow a better adapted restoration.

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Level 15

Sounds like an expense

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Level 11

Sounds like it to me too.  I generally recommend that the taxpayer make the safe harbor election for small taxpayers when available, and then take the blank stare on their face as consent to do so.  Then we don't have to spend any time at the BAR trying to figure out if this was a repair or somehow a better adapted restoration.

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Level 1

Thanks for the advice and chuckle!!! Have a great day

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