Depreciation Question - Tom

[CrackerJacks]

Can I depreciate home improvements made to the home we rent. This is not a rental property, we live in the home and pay rent to family members that jointly own the property. We pay for all repairs and matinence. We are going to be remodeling 2 bathrooms (replacing toilets and floors). Would this be considered a home improvement or a home repair. The toilets are old and don't flush properly and the linoleum floors are peeling.

[Michael]

Some answer previously from Tom on Home Improvement Depreciation: https://www.daycare.com/forum/tags.p...t+depreciation

[TomCopeland]

Home depreciation

Can I depreciate home improvements made to the home we rent. This is not a rental property, we live in the home and pay rent to family members that jointly own the property. We pay for all repairs and matinence. We are going to be remodeling 2 bathrooms (replacing toilets and floors). Would this be considered a home improvement or a home repair. The toilets are old and don't flush properly and the linoleum floors are peeling.

Yes, you can claim home improvement and repair expenses even though you don't own the home and are paying rent. If you remodeled the bathrooms you should count this as a home improvement. If you just replace the linoleum floor and nothing else, you can call this a personal property deduction and depreciate it over 7 years and use the 50% bonus depreciation rule. If you just replace the toilet you could call this a repair and claim the business portion of the expense in one year. However, when you are doing both and perhaps other things as well, then you are remodeling the bathroom and must depreciate it as a home improvement over 39 years.

[CrackerJacks]

Thank you Tom.