repair expense question

[C]

Trying to wrap my head around the new regulations...

In one of my buildings I did some electrical work in one unit - I added some new circuits and reworked some others because the tenant kept overloading them and tripping the breakers. The amount it cost pushed me over the safe harbor.

So for the electrical UoP for this building, is this a betterment, restoration, or adaptation to a new use?

I estimate that maybe 15-20% of the electrical UoP was modified. This is clearly not a restoration, one of the examples explicitly says replacing 30% of the electrical system is not a restoration.

It's also not an adaptation to a new use, it was an apartment before, it is still an apartment.

So is it a betterment? There are three conditions:

"Amounts paid to fix a material condition or material defect that existed before the acquisition or arose during production of the unit of property; or"

I don't think this fixed a material condition or defect, I had no trouble for years, until this one tenant started running too many things at one.

"Amounts paid for a material addition, including a physical enlargement, expansion, extension, or addition of a major component, to the property or a material increase in capacity, including additional cubic or linear space, of the unit of property; or"

Definitely doesn't seem like a material addition, less than 20% of the UoP was affected. I did add some circuits, though... is that constitute a sufficient "expansion" to make it a betterment?

"Amounts paid that are reasonably expected to materially increase productivity, efficiency, strength, quality, or output of the unit of property where applicable."

Again, what does "material" mean?

Opinions/guidance are appreciated.

If it is a betterment, what is the depreciation schedule?

Thanks.

--
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2011) - All rights reserved. >>
<< ------------------------------------------------------- >>