I am thinking about landscaping part of my yard just for Daycare. This area would only be used by the DC kids. My own kids are grown and out of the house. Would I be able to deduct 100% of the cost? or would I have to use my time space %? I also have to replace a brick wall that is between our property and the street, would I be able to deduct that? Thanks for any input.

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The answer depends on what you mean by landscaping. If you are talking about grading land and altering the shape of the land? If so, that's landscaping. If the landscaping would be destroyed if you moved your home, then you can depreciate it over 39 years. If you get no personal use out of it, you could depreciate 100% of the cost over 39 years. However, unless the landscaped area was fenced off or otherwise separated from the rest of the yard, you are still getting personal use of the are and would use your time-space %.

If the landscaping would not be destroyed if you moved your home, then it's not deductible at all. It would be considered land and land is not depreciable.

If you are simply planting trees and shrubs and doing less work to change the shape of the land, treat the cost as a maintenance expense, and deduct the cost in one year. Use your time-space % unless you will separate the landscaped are from the rest of the yard.

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thanks Tom!

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