Tax

Have a tax question? Ask a tax Expert

Ask an Expert,
Get an Answer ASAP!

This answer was rated:

4 plus years back I purchased an apt building and spent

4 plus years back...

4 plus years back I purchased an apt building and spent several hundred thousand to renovate I didn't claim the full amount i have been claiming a portion $25K each year. I was told that I have to go back and redo my original taxes to claim the full amount in one shot. I think this is an issue to redo the past several years and claim a large amount in one shot

Show More
Show Less
Ask Your Own Tax Question
Answered in 5 minutes by:
3/24/2018
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,756
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified

Hello!

My name is***** will assist you today.

Please give me one moment while I review your question and type my initial response

Ask Your Own Tax Question

When you improve the property the cost is capitalized and depreciated over the life of the building.

Repairs are deducted in the year they are incurred.

Ask Your Own Tax Question

This information is covered in IRS Publication 527, which I have linked to below for your convenience.

https://www.irs.gov/publications/p527

Ask Your Own Tax Question

"The cost of improvements is recovered by taking depreciation."

Improvements.

You must capitalize any expense you pay to improve your rental property. An expense is for an improvement if it results in a betterment to your property, restores your property, or adapts your property to a new or different use.

Ask Your Own Tax Question

Please let me know your follow up questions.

When you have no further questions a positive rating of 5 stars is much appreciated.

Thank you!

Ask Your Own Tax Question
Customer reply replied 4 months ago
Ok I understand but do I have to go back and redo all the previous returns that seem like a very confusing process

The repairs need to be deducted in the year you incurred the cost.

The improvements would need to be capitalized and depreciated. Claiming a portion each year is not correct. Yes, you should go back and amend the tax returns which don't appear to be done correctly.

Ask Your Own Tax Question
Customer reply replied 4 months ago
ok thank you very much

Please do let me know if you have any additional questions.

Have a great day

Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,756
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA
Verified
Chad EA, CDFA®, CFP® and 87 other Tax Specialists are ready to help you
Ask your own question now
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax professionalLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask Chad EA, CDFA®, CFP® Your Own Question
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®, CERTIFIED FINANCIAL PLANNER ®, Professional
Category: Tax
Satisfied Customers: 2,756
2,756 Satisfied Customers
Experience: IRS Licensed Enrolled Agent, CDFA ® CFP ®, MBA

Chad EA, CDFA®, CFP® 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:

Wallstreet Esq.

Wallstreet Esq.

Tax Attorney

586 satisfied customers

10 years experience

Mark D

Mark D

Enrolled Agent

1,338 satisfied customers

MBA, EA, Specializing in Business and Individual Tax Returns and Issues

Richard

Richard

Tax Attorney

4,512 satisfied customers

29 years of experience as a tax, real estate, and business attorney.

PhillipsEsq.

PhillipsEsq.

Attorney-at-Law

59 satisfied customers

B.A., M.B.A, J.D.

Robin D.

Robin D.

Senior Tax Advisor 4

15,569 satisfied customers

15years with H & R Block. Divisional leader, Instructor

Megan C

Megan C

Certified Public Accountant (CPA)

8,655 satisfied customers

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

jgordosea

jgordosea

Enrolled Agent

2,885 satisfied customers

I've prepared all types of taxes since 1987.

< Previous | Next >

Related Tax Questions
I live in California and have been married since the end of
Hello, I live in California and have been married since the end of 2015. I filed married joint for 2016 but my husband didn't earn any money in 2016 so he didn't file at all. I was suppose to get back… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
I am a restaurant owner in texas and I recently discovered
Hello I am a restaurant owner in texas and I recently discovered that a food vendor had been charging for some invoices that I did not order. He was presenting me with a statement that had many invoic… read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
I have a rental income apt in my duplex residence that I've
I have a rental income apt in my duplex residence that I've been renting out over the course of 15 years. The first few years after purchasing the home I had a tax professional do my taxes but in the … read more
Mark D
Mark D
Enrolled Agent
Master's Degree
1,338 satisfied customers
I am 61 years old. I considering taking a "lump sum" payment
I am 61 years old. I considering taking a "lump sum" payment my retirement pension. I want to pay off my mortgage and credit card which together equal about one hundred fifty thousand dollars. How can… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Did your answer say I don't have to pay Capitol Gains Tax?
Did your answer say I don't have to pay Capitol Gains Tax? I don't understand. Maybe plug in the dollar amounts to help me understand your answer. Thank you… read more
Megan C
Megan C
Certified Public Accountant (CPA)
Master's Degree
8,655 satisfied customers
I have a follow up question about the original basis of the
I have a follow up question about the original basis of the rental property. I bought it from my parent for 30k several years ago, whom originally inherited it at a basis of 70k. my parent did not cla… read more
taxmanrog
taxmanrog
Master\u0027s Degree
1,049 satisfied customers
sorry to bother you again.I was getting ready to send in the
sorry to bother you again.I was getting ready to send in the fbars and thought I'd see if I owed any back taxes. Being I had only sent in 1040A's for the last 20 years, never claiming my dutch income … read more
Robin D.
Robin D.
Senior Tax Advisor 4
Vocational, Technical or Trade School
15,569 satisfied customers
i sold my % of a restaurant. my intial investment was 50k the
i sold my % of a restaurant. my intial investment was 50k the first year my partner claimed a 50% lost . i was not satisfied with the way he ran the business so he bought me out for 25k with a 25k non… read more
Chea Romine
Chea Romine
Managing Partner
Bachelor's Degree
197 satisfied customers
I have a small real estate rehab business. I buy houses, fix
I have a small real estate rehab business. I buy houses, fix them up and sell them to end users. I am looking at the city of Oakland (California) business tax rate table: http://www2.oaklandnet.com/w/… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
Tax Question: I loaned a relative a large sum of money several
Tax Question: I loaned a relative a large sum of money several years ago to purchase a house. Do to the economy, they had to short sell their house at a loss of several hundred thousand dollars. was n… read more
LEV
LEV
Retired
Bachelor's Degree
14,896 satisfied customers
LLC bought & renovated prop. in 2010, put in service in 2011
In April 2010 my wife and I formed an LLC and purchased an office building under the LLC (using our own funds). We made renovations to it from Oct. 2010 through March 2011. We started using it for her… read more
socrateaser
socrateaser
1,031 satisfied customers
Hi , I have an old IRA ( rolled over from a 401k)..During the
Hi , I have an old IRA ( rolled over from a 401k)..During the market crash the balance tumbled from $150k to around $50k..Question: if I closed the account since there was a large loss in principal wo… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
i bought a building 10 years ago for$470,000 [one retail store
i bought a building 10 years ago for$470,000 [one retail store & 2 apts above thestore. next week i am selling for one million one fifty thousand dollars. i am trying to find out what i would have to … read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I have a rental house that I sold on 11/5/09. I lived in it
I have a rental house that I sold on 11/5/09. I lived in it from 11/87 to 4/94 then rented until 4/09 when we renovated it to sell. Made 19,500 clear at closing. House sold for 103,000 and was purchas… read more
Merlo
Merlo
Tax Consultant
558 satisfied customers
I have been arguing my case since 3-28-08 to no avail..Ref
I have been arguing my case since 3-28-08 to no avail..Ref: 2005/2006 Schedule E deductions denied by IRS during a very funky examination.. DuplexBuilding was put in servie 1991...I took occupancy of … read more
Anne
Anne
Master Tax Preparer
1,328 satisfied customers
In May of 2007 I sold a four unit apt. building. I had ...
In May of 2007 I sold a four unit apt. building. I had lived in one apt. for most of 2003, 2004, and some 0f 2005. Then I moved out. I just recently found out that because of depreciation through the … read more
MequonCPA
MequonCPA
CPA Firm Owner
Master's Degree
2,165 satisfied customers
I have several hundreds of thousands of dollars on a stock ...
I have several hundreds of thousands of dollars on a stock owner sellout. I wish to claim more than 7k each year.Where or what do Ido?… read more
RD
RD
Self Employed
Master's Degree
1,164 satisfied customers
I havent filed or paid my taxes for the past three
I haven't filed or paid my taxes for the past three years. I live in Manhattan, NY. What do I need to do?… read more
Ed Johnson
Ed Johnson
Senior HR Consultant and Business Devlpm
Bachelor's Degree
6,994 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