MAMalody Posted April 21, 2016 Report Share Posted April 21, 2016 I must be tired still or missing something. I have always thought that a roof replacement on a rental was depreciated not expensed like it could be for repairing a portion of the roof. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 21, 2016 Report Share Posted April 21, 2016 Yes, especially now with the new Form 3115 repair regs. Depreciated except for any needed repair portion. Brief example: expense decking/fascia/gutter repairs from a hole where a tree branch hit the roof, then capitalize the new roof itself. Quote Link to comment Share on other sites More sharing options...
Possi Posted April 21, 2016 Report Share Posted April 21, 2016 That is correct. 27.5 years. Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 21, 2016 Report Share Posted April 21, 2016 Then claim as expense, any un-depreciated portion of the old roof. 5 Quote Link to comment Share on other sites More sharing options...
BulldogTom Posted April 23, 2016 Report Share Posted April 23, 2016 On 04/21/2016 at 10:12 AM, Jack from Ohio said: Then claim as expense, any un-depreciated portion of the old roof. And there lies the rub. I doubt if any one of us breaks out the portion of the home that is the roof. 10 or so years later, we need to replace the roof and we are looking for a deduction on the old roof for the un-depreciated portion. Most of the time, you are lucky to get a good valuation breakout for the land and the house. Me - how much did you pay for the house. Client - I think about 480K Me - how much do you think the land it sits on is worth? Client - Why? Me - because we can't depreciate the land. Client - the land is worth nothing without the home on it. Sheesh. Everyone knows that. 10 Quote Link to comment Share on other sites More sharing options...
mcb39 Posted April 23, 2016 Report Share Posted April 23, 2016 14 hours ago, BulldogTom said: And there lies the rub. I doubt if any one of us breaks out the portion of the home that is the roof. 10 or so years later, we need to replace the roof and we are looking for a deduction on the old roof for the un-depreciated portion. Most of the time, you are lucky to get a good valuation breakout for the land and the house. Me - how much did you pay for the house. Client - I think about 480K Me - how much do you think the land it sits on is worth? Client - Why? Me - because we can't depreciate the land. Client - the land is worth nothing without the home on it. Sheesh. Everyone knows that. I always request property tax forms and usually they are forthcoming. They split the FMV between the house and land. Otherwise, they can sometimes be obtained through the county website. 1 Quote Link to comment Share on other sites More sharing options...
MAMalody Posted April 24, 2016 Author Report Share Posted April 24, 2016 Thanks for the input, I appreciate it. I copied the page out of the IRS pub that had an example specifically stating the above difference between repairs and depreciation of the roof. Have not heard back from the attorney yet. My situation was that I sent out the return for review and return of Form 8879. They sent me an e-mail with a statement from an attorney (he really is, I have met him) saying that the roof replacement should be expensed and then telling me not to adjust the basis. Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 25, 2016 Report Share Posted April 25, 2016 On 4/24/2016 at 11:35 PM, MAMalody said: They sent me an e-mail with a statement from an attorney (he really is, I have met him) saying that the roof replacement should be expensed and then telling me not to adjust the basis. Can't be done with the new regs. Send him back an email stating while that could have been the case years ago, but new regs come out for tax year 2014 and it is no longer allowed. 5 Quote Link to comment Share on other sites More sharing options...
Jack from Ohio Posted April 25, 2016 Report Share Posted April 25, 2016 Catherine is absolutely correct. Tell the attorney to stick to law and leave taxes alone. 1 Quote Link to comment Share on other sites More sharing options...
Catherine Posted April 25, 2016 Report Share Posted April 25, 2016 1 minute ago, Jack from Ohio said: Catherine is absolutely correct. Except for a couple of grammatical mistakes caused by posting while distracted! 2 Quote Link to comment Share on other sites More sharing options...
MAMalody Posted April 26, 2016 Author Report Share Posted April 26, 2016 They finally conceded the point. 2 Quote Link to comment Share on other sites More sharing options...
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