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Daycare and Taxes>Partial Driveway Replacement - Depreciation or Write-off
tn0087 06:15 PM 07-30-2013
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
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 07:17 AM 07-31-2013
Originally Posted by 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
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.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
tn0087 05:00 PM 08-19-2013
It never ceases to amaze me how active you are on this forum. Thanks for the help, Tom!
Tim
Tim