Partial Driveway Replacement - Depreciation or Write-off

[tn0087]

Hi,

We are replacing approximately 40% of our driveway due to drainage issues which have caused it to heave and crack. The remaining 60% of the driveway is not being touched as it is in good shape. Since we are digging out the old asphalt and binder and replacing it with new for the 40% of the driveway that is being replaced, does this constitute a depreciation? Or since we are only repairing less than half of the driveway to get it back to the original working condition, would this be a write-off? Any insight would be greatly appreciated!

Thanks!
Tim

[TomCopeland]

Hi,

We are replacing approximately 40% of our driveway due to drainage issues which have caused it to heave and crack. The remaining 60% of the driveway is not being touched as it is in good shape. Since we are digging out the old asphalt and binder and replacing it with new for the 40% of the driveway that is being replaced, does this constitute a depreciation? Or since we are only repairing less than half of the driveway to get it back to the original working condition, would this be a write-off? Any insight would be greatly appreciated!

Thanks!
Tim

Although tax law is not exactly clear on this point, I would treat these expenses as a repair, not a land improvement. Multiply the cost by your Time-Space % and deduct in one year.

[tn0087]

It never ceases to amaze me how active you are on this forum. Thanks for the help, Tom!

Tim