Message Font: Serif | Sans-Serif
No. of 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.

Print the post  


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.
Live Video Event Monday!
The GP team is hosting a live video event on Monday at 4 p.m. ET. Don't worry if you can't make it — we'll have a replay and a transcript. Click for more!
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.