Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next
Author: brucedoe Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121217  
Subject: Depreciation Date: 4/19/2011 3:33 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
This item does not apply to 2010 (which is thankfully over for us) but to 2011.

My wife has a small business renting a cottage on a lake. She decided to have the spare bedroom renovated. In doing so they found that squirrels had damaged some of the wiring in the ceiling and that the cottage wiring would have to be brought up to code.

My question is that rewiring is almost all labor plus a relatively tiny amount going to the new wires, perhaps a new circuit breaker box, etc. Can we depreciate the whole bill?

When a house is built, you do not separate the cost of the materials (maybe 10% of the total bill) from the labor (around 90%) but depreciate the total bill so my guess is that we can depreciate the whole bill because, with the rewiring, the whole thing will have to be done again in say 15 or 20 years or so.

A part of the cottage harks back to around 1890 and the electrician said he would guess the wiring was done in the 1920s.

brucedoe
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (3) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Managing Your Wealth
Our own TMFHockeypop from Rule Your Retirement fame on the TV show Managing Your Wealth.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Post of the Day:
Value Hounds

Clorox Isn't Cleaning Up
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement