Payments on Fence

[Kelly]

In August 2015 I had a new privacy fence installed to replace an old fence across the back of my yard. Total cost was $1550 but I did not pay for it all at one time. I have been making monthly payments of varying amounts and just finished paying this month. How do I record/deduct this cost for taxes?

[Michael]

A previous thread on deducting a fence: https://www.daycare.com/forum/showthread.php?t=72868

[Kelly]

Does it make a difference that I did not pay for it all at one time?

[TomCopeland]

fence

Does it make a difference that I did not pay for it all at one time?

It doesn't matter when you make payments. Treat this as one expense. You can use the 50% bonus depreciation rule which means you can claim half of the depreciation in 2015 and depreciate the other half over 15 years. If this is the only home improvement you did, it's possible you could treat this as a repair if you meet the tests of a new rule. See my article on this:http://tomcopelandblog.com/when-can-...ed-in-one-year

[Kelly]

This may be a dumb question but if I file electronically how do I attach the statement to my tax return?

[TomCopeland]

file electronically

This may be a dumb question but if I file electronically how do I attach the statement to my tax return?

Good question. I assume that the software will allow you to attach an electronic statement.

[TomCopeland]

fence

In August 2015 I had a new privacy fence installed to replace an old fence across the back of my yard. Total cost was $1550 but I did not pay for it all at one time. I have been making monthly payments of varying amounts and just finished paying this month. How do I record/deduct this cost for taxes?

You can depreciate the fence over 15 years on your 2015 taxes, regardless of when you made the payments. Use the 50% bonus depreciation rule to get have of the depreciation in 2015. You can deduct any interest you paid in the year you paid the interest.