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PDtax, Certified Public Accountant (CPA)
Category: Tax
Satisfied Customers: 4525
Experience:  35 years tax experience, including four years at a Big 4 firm.
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I own an apartment building. In 2013 I spent $33,252.00 for

Customer Question

I own an apartment building. In 2013 I spent $33,252.00 for re-pipe-plumbing. I set up 27.5 yrs.. depreciation. In 2013,the depreciation amounted to $559.00 and in 2014, $1,219.00. a total of $1,78.00 leaving a balance of $31,747.00.I read that the IRS issued a new Rev, Proc. whereby I could go back and write-off the expense of $31,747.00....but this could only be done in 2014 prior to October 15, 2015. If this information is correct, how do I go about doing this?
Submitted: 2 years ago.
Category: Tax
Customer: replied 2 years ago.
I Did not mention that this property is a two person LLC
Expert:  Stephen G. replied 2 years ago.
I think you are referring to the new Repair Regulations which are quite complex in their implementation.
I am not yet up to speed on all of the details beyond the "Safe Harbor Rules" which would limit the current deductions to the lesser of $10,000. or 2% of the original cost of the building.
Since your expenditure exceeds that maximum amount of $10,000., and possible less if the original building cost plus improvements is less than $500,000., you will come under the more complicated general regulations.
Given that, I am going to "opt-out" so another expert that has worked with those regulations will be able to assist you.
Expert:  PDtax replied 2 years ago.
Welcome to the site. I'mCustomer and can assist since Steve opted out.
A cost segregation study is used to determine noon team property Depreciation components. You have identified re pipe plumbing and want to expense that amount.
I just looked at a recent case on point, and can look at the Rev Proc, but the research you need will take some time.
I will post an offer for 1 hour research time. Accept, and I'm on this in the morning.