Finance

Have finance questions? Ask a financial expert online.

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

Can one take a "bonus depreciation" (50% depreciation in the…

Hello, can one take a...
Hello, can one take a "bonus depreciation" (50% depreciation in the first year of service) on capital improvements done to a residential rental property? This is for the 2013 tax return.
Show More
Show Less
Ask Your Own Finance Question
Answered in 11 minutes by:
4/15/2017
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,625
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified

Hi,

...

It depends on the improvement. Not the structure itself.

...

But bonus depreciation does cover appliances, carpeting, and blinds purchased for rental units; and office furniture, computers, and other equipment used in landlord offices.

...

It's also available for new depreciable land improvements such as swimming pools and driveways.

...

To qualify for bonus depreciation the property must be NEW and have a useful life of 20 years or less. Only new property is eligible for bonus depreciation, used property is not eligible.

Ask Your Own Finance Question

Please let me know if you have ANY questions at all, before rating me.

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

Otherwise I’ll receive no compensation for the work here at all, from JustAnswer.

Thank you!

Lane

I hold a law degree, with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in finance a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, to clients on three continents since 1986.

Ask Your Own Finance Question

So again, Yes, for certain property other than the structure itself bonus depreciation is available on a 2013 return.

...

I hope you’ll rate me (using those stars, or faces on your screen, by clicking submit) based on thoroughness and accuracy, rather than any good news / bad news content.

Otherwise I’ll receive no compensation for the work here at all, from JustAnswer.

Thank you!

Lane

Ask Your Own Finance Question
Customer reply replied 1 year ago
Thank you Lane. How does the bonus depreciation apply to porch steps that were replaced?

As long as completely replaced, that's 15 year property, so you'll take the first year's depreciation plus 50% of cost in year one, then depreciate the remainder at the 15 year rate until fully depreciated.

Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,625
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
Verified
Lane and 87 other Finance Specialists are ready to help you
Ask your own question now
Customer reply replied 1 year ago
Thank you very much

You're very welcome

Ask Your Own Finance Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a financial professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Lane Your Own Question
Lane
Lane
Lane, JD, CFP, MBA, CRPS
Category: Finance
Satisfied Customers: 14,625
14,625 Satisfied Customers
Experience: Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986

Lane is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

Rakhi Vasavada

Rakhi Vasavada

Financial and Legal Consultant

2,609 satisfied customers

Graduated in law with Emphasis on Finance and have have been working in financial sector for over 12 Years

Megan C

Megan C

Certified Public Accountant (CPA)

2,222 satisfied customers

Licensed CPA, CFE, CMA, CGMA who teaches accounting courses at Master's Level

Manal Elkhoshkhany

Manal Elkhoshkhany

Tutor

1,933 satisfied customers

More than 5000 online tutoring sessions.

JKCPA

JKCPA

CPA

844 satisfied customers

Bachelors degree and CPA with Accounting experience.

Eric

Eric

Financial Manager

559 satisfied customers

Loan servicing, counseling and real estate expert. Foreclosure Expert and Financial Planner.

R. Klein, EA

R. Klein, EA

Accountant

480 satisfied customers

TurboTax Expert. QuickBooks Certified Pro Advisor

Dimitry K., Esq.

Dimitry K., Esq.

Attorney

332 satisfied customers

NASD Licensed Rep, 1997-2001, Business Attorney

< Previous | Next >

Related Finance Questions
I bought a house in India few years back and kept vacant
I bought a house in India few years back and kept vacant until mid of 2017 when it was let out . I did not take depreciation deduction from rental income of this house in my US Income Tax Return for 2… read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,463 satisfied customers
I have a client who purchase a shop for his auto business on
Hey Lane,I have a client who purchase a shop for his auto business on 10/16/17. From what I'm reading it looks like he could take a bonus depreciation of 100%.My questions are: #1 is that correct? #2 … read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
Just need to do a double check with you to make sure what I
Hey Lane,Just need to do a double check with you to make sure what I read is accurate. I have a tax client who did a Kitchen Remodel on her house rental property. I'm reading that she cannot take Sect… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
I need help with calculating depreciation. I closed on a
I closed on a residential rental property on August 15, 2016. The land value was 501,660 and the improvements were 489,340. How much depreciation should I have taken on my taxes for 2016 and how much for 2017? … read more
PDtax
PDtax
Owner
Master\u0027s Degree
1 satisfied customers
When to report new property on tax return? I bought a duplex
When to report new property on tax return? I bought a duplex that is to be a rental property but it has taken more than a year to get it ready to rent. Can I deduct expenses and start depreciation on … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,463 satisfied customers
I am hopeful by you can help me with a tax return question.
Hello! I am hopeful by you can help me with a tax return question. I understand that the only way I can claim home repair expenses is if the house is a rental property. I purchased a foreclosure in ea… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am in a 6 person partnership. We are families (three
I am in a 6 person partnership. We are families (three brothers & spouses). The boys just received property gifted from their father and we intend to use it for rental property. How should I account f… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Lane, I am working on a tax return that the property was
Good evening Lane, I am working on a tax return that the property was owned by an unmarried couple. they both owned 50 percent of the share of the property. they live in one of the units and they rent… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
Why is it that in evaluating commercial properties, the cap
why is it that in evaluating commercial properties, the cap rate (rate of return) is inversely related to the present value? i'd think that the higher the rate of return, the more desirable the proper… read more
Matthew Breecher
Matthew Breecher
President
MBA (Graduate Legal Studies)
286 satisfied customers
I have purchased a new rental property and have a few
I have purchased a new rental property and have a few questions about what I can depreciate/include in the cost basis of the property.Property purchased 11/30/2016 Property made available to rent 12/2… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
How to Depreciate Leasehold Improvements in state of
How to Depreciate Leasehold Improvements in state of California? Over how many years and what method of depreciation to use? Any additional first year depreciation allowed?… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
My client is being out in her 1040 and the has an s
My client is being out in her 1040 and the has an s corporation the auditor is asking why we took a bonus depreciation in 3 lease improvement back in 2014. I don't think the agent has the right to do … read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
I own a unit which we currently lie in (6 years) and am
Hi. I own a unit which we currently lie in (6 years) and am about to buy a house with my husband. I would like to keep my unit as an investment property. My yearly income is 300,000. Should I increase… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
My fiance and i live in the state of ny. we own 3 rental
my fiance and i live in the state of ny. we own 3 rental houses and are in the middle of finalizing an llc. we took 54000 from his 401k to buy one of the units. the other unit we bought cost 22000 and… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
Lane, I'm working on a tax return for a Single Member LLC
Hi Lane,I'm working on a tax return for a Single Member LLC and I'm getting confused regarding depreciation and amortizations. He just started his business in 2015, and rents a building of which he ha… read more
Lane
Lane
JD, CFP, MBA, CRPS
14,625 satisfied customers
Question .- if i want to do depreciation on a rental
question .- if i want to do depreciation on a rental property do i need to enter section 179 limit and how much it is ?also the property was purchased on 08/01/2016please advise… read more
Mark Taylor
Mark Taylor
Certified Public Accountant
Masters
2,327 satisfied customers
I bought a house for $169,000. I put $50,000 of improvements
I bought a house for $169,000. I put $50,000 of improvements into it. I then converted it to a rental 8 years after purchase at a basis of $400,000. I put another $30,000 into the house and used doubl… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Hello...I just need some basic info, I have rental properties
Hello...I just need some basic info, I have rental properties and I'm working on my schedule E. I understand depreciation, I just don't understand the tax code related to home depreciation. Can you ex… read more
Rakhi Vasavada
Rakhi Vasavada
Financial and Legal Consultant
Bachelor's Degree
2,609 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x