State Required Pool Fence

[tn0087]

Hi Everyone,

We have an above-ground pool in our fenced backyard. Having a fenced backyard is sufficient for NYS law to own a pool; however, because the pool sides are not 48" all the way around, we are required to put a fence inside the yard surrounding the pool to be able to use the backyard as daycare space.

We have done this and I was wondering how it should be counted on this year's taxes. Since the yard is already fenced, adding the fence around the pool is only to satisfy daycare requirements and not something we would otherwise do in our backyard. As a result, I would think this should be a 100% write-off instead of using T/S%. Since this is a new fence, do I need to depreciate it? Or can it be written off in one year as it is tied to an existing deck that surrounds part of the pool already and connects to the house? The cost of putting in the fence is just under $2000.

Thanks,
Tim

[sharlan]

I would run this by Tom Copeland.

IMHO, you would depreciate it because of the cost.

[TomCopeland]

Fence

Hi Everyone,

We have an above-ground pool in our fenced backyard. Having a fenced backyard is sufficient for NYS law to own a pool; however, because the pool sides are not 48" all the way around, we are required to put a fence inside the yard surrounding the pool to be able to use the backyard as daycare space.

We have done this and I was wondering how it should be counted on this year's taxes. Since the yard is already fenced, adding the fence around the pool is only to satisfy daycare requirements and not something we would otherwise do in our backyard. As a result, I would think this should be a 100% write-off instead of using T/S%. Since this is a new fence, do I need to depreciate it? Or can it be written off in one year as it is tied to an existing deck that surrounds part of the pool already and connects to the house? The cost of putting in the fence is just under $2000.

Thanks,
Tim

Because the fence is a specific requirement of your licensing rules and because you get no personal benefit from it, I would claim 100% of the cost. However, a fence is considered a land improvement, therefore you must depreciate it over 15 years. You can use the 50% bonus rule in 2013 and deduct 50% of the cost in 2013 (using Form 4562, line 14). Depreciate the remaining $1,000 over 15 years.