remodel of rental property
Liz
will remodel, and put in new appliances at a set price per rental
unit. How do I account for this for bookkeeping purposes? I know, I
can depreciate appliances like stove, washer dryer over a certain
number of years, but since it is all rolled into one price per unit,
how do I go about this? Have a Happy Thanksgiving and thank you for
all the giving you provide to this group.
Marion
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Arthur Kamlet
Liz <Mari...@comcast.net> wrote:
>I am in the process of purchasing a tri-plex. I have a contractor who
>will remodel, and put in new appliances at a set price per rental
>unit. How do I account for this for bookkeeping purposes? I know, I
>can depreciate appliances like stove, washer dryer over a certain
>number of years, but since it is all rolled into one price per unit,
>how do I go about this? Have a Happy Thanksgiving and thank you for
>all the giving you provide to this group.
>Marion
See IRS Publication 527. And find a local tax practitioner
whose practice includes quite a few rental properties.
You will have to decide if each unit in the triplx will be
treated as a separate property for tax purposes. You will
allocate between the building portion of the units and the land.
You will allocate the cost of the units from the cost of the
applicances if they are mentioned separately.
Each depreciable property will generate a depreciation expense
once placed into rental service, depending on the class of the
property.
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH