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Old 03-01-2018, 10:11 AM
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Mom2Two Mom2Two is offline Member
Join Date: Jan 2015
Location: U. S. A.
Posts: 1,476
Default TQFT New Depreciation Laws For Home Improvement

So I read your blog, about the new tax laws. It's a lot to take in, and I want to check my understanding on it.

If I understand correctly, a home improvement that is less than 2% of the home's value can be depreciated in one year. Is that right?

And this is true for the next five years. Is that right?

And if it's less than $2500, it can be an expense. Is that right?

So, getting down to brass tacks...if I spent $2499 on new concrete to turn our driveway into a circle driveway for our home businesses (daycare parents and DH does lawns, so a circle driveway is also good for his trailer), it would be an expense even though it's a permanent part of our home. Is that right?

If our home is worth $275,000 on our property tax statement, does that mean we can spend $5500 on a home improvement and depreciate it all in one year for the next five years?

What about a concrete pad for outdoor ball sports? What about a gazebo or framework for a portico over our current concrete pad? What about a covered addition that happened to be on footings, like a sunroom, or part of a sunroom?

And THANK YOU!!!! You help all of us, Tom.
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