Help Tom!

[Snowmom]

I paid to get my taxes done this year and my accountant depreciated:
1. Windows we replaced: 39 years.
2. Water Heater we replaced: 7 years.
3. Furnace/AC replaced: 39 years.

Reading your 2015 tax changes handout this week, I thought that REPAIRS could be deducted in one year in 2015 vs spreading them out over 39 years.
Am I wrong in assuming since all 3 bulleted points failed and had to be replaced, they should be considered "repairs"?

Also, we purchased a new Rainbow Play Set at $3500- does the 50% bonus depreciation rule apply or does it have to be under $2500?

THANK YOU!

[TomCopeland]

Taxes

I paid to get my taxes done this year and my accountant depreciated:
1. Windows we replaced: 39 years.
2. Water Heater we replaced: 7 years.
3. Furnace/AC replaced: 39 years.

Reading your 2015 tax changes handout this week, I thought that REPAIRS could be deducted in one year in 2015 vs spreading them out over 39 years.
Am I wrong in assuming since all 3 bulleted points failed and had to be replaced, they should be considered "repairs"?

Also, we purchased a new Rainbow Play Set at $3500- does the 50% bonus depreciation rule apply or does it have to be under $2500?

THANK YOU!

If you replaced less than half the windows, you can deduct the time-space % of them in one year as a repair. If the water heater cost less than $2,500 you can deduct the time-space % in one year. If it costs more, then depreciate it over 7 years and use the 50% bonus depreciation rule. Depreciate the furnace/AC over 39 years. You can use the 50% bonus rule on the Play Set because it doesn't have to cost less than $2,500 to use this rule.