Depreciation Question for Tom
 

We built new decks, front and back this fall. I need to depreciate these 39 years, right? The same thing for our new furnace.

However, when I enter the asset It says.. Describe this asset-

Would the furnace be Tools and Equipment? Or "Other"?

The asset class would be.. 3, 5, 7, 10, 15, 20, 25 year? Or 27.5 Residential Rental. 31.5 or 39 year Non residential real estate?

I know you said it has to be depreciated over 39 years? But it's not non-residential real estate. So I'm confused.

Have I explained this clearly enough? LOL

Some helpful posts: https://www.daycare.com/forum/showthread.php?t=59385

Thanks, Michael, but that doesn't really apply to this particular situation.

That kind of question would be good to ask at Tom's webinar next week. He just wrote an article about the New IRS Rule on House Expenses that he will be covering. http://www.tomcopelandblog.com/2013/...-expenses.html

Depreciation
 

Originally Posted by suehelen:
We built new decks, front and back this fall. I need to depreciate these 39 years, right? The same thing for our new furnace.

However, when I enter the asset It says.. Describe this asset-

Would the furnace be Tools and Equipment? Or "Other"?

The asset class would be.. 3, 5, 7, 10, 15, 20, 25 year? Or 27.5 Residential Rental. 31.5 or 39 year Non residential real estate?

I know you said it has to be depreciated over 39 years? But it's not non-residential real estate. So I'm confused.

Have I explained this clearly enough? LOL

You must depreciate a deck or furnace over 39 years. It is considered non-residential real estate in that the business portion is business, not personal and it's connected to real estate. It may not make perfect sense, but that's the rule - 39 years. List the furnace as other.


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THANK YOU!! That's where I was confused!