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Poll Results
 
 How did you do on taxes this year
 Got a big refund 0 0%
 Got a modest refund 0 0%
 No real change 0 0%
 Owed a little more 0 0%
Total votes: 0   Please or sign up to vote.


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BillHoo

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Posts: 63
Reply with quote  #1 
Just wondering if landlords have done better, or worse on taxes this Year.
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Bill_H
AccidentalRental

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Posts: 170
Reply with quote  #2 
I haven't pulled my numbers together yet.  I'm not sure what to expect really.  will come back and vote.

It's not the refund that matters though.  It's that actual taxes.  Withholding rates were artificially reduced this year so you might get a smaller (or no) refund with not change in taxes.

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Maxmillian

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Posts: 52
Reply with quote  #3 
 Question : any way to get a faster write off on improvements ?  Major investments like a new roof or furnace have to be written off over27.5 years   A very bad deal for landlords 
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BillHoo

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Posts: 63
Reply with quote  #4 
As far as I know, the only way is to sell off ownership of the property.

Otherwise, keep a spreadsheet of each improvement and collectively, your annual credits get bigger.

I too would like to know of a better way.

Would be great if we got full credit for the year the improvement was implemented.  The nation would be sprawling with perfectlyt kept properties!  All with new floors, new appliances, solar panels, etc.

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Bill_H
LLinVA

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Posts: 505
Reply with quote  #5 
FYI some of those types of improvements can be expensed depending on the exact nature of the work (the surface of the roof vs the rafters, carpet that's not glued down, etc.). 
BillHoo

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Posts: 63
Reply with quote  #6 
What about carpet that is spudged in place over a tack strip?
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Bill_H
Maxmillian

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Posts: 52
Reply with quote  #7 
An IRS auditor told me that a repair is a few shingles Otherwise its 27.5 years..The carpet is a five year item .Not too bad .
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BillHoo

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Posts: 63
Reply with quote  #8 
Wow!  That is news I can use!  I've been trying to stretch out a carpet's life to 10 years at least!

"The IRS allows depreciation under the Modified Accelerated Cost Recovery

System (MACRS) for carpeting in a rental apartment over a 5-year period. See IRS
Publication 5271; IRS Announcement 99-82.2"

1 Available at http://www.irs.gov/pub/irs-pdf/p527.pdf
2 Available at http://www.irs.gov/pub/irs-irbs/irb99-32.pdf
3 Available at https://www.law.cornell.edu/uscode/text/26/168


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Bill_H
LLinVA

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Posts: 505
Reply with quote  #9 
Actual useful life and IRS depreciation schedule are two completely separate issues. Just because the IRS says x years doesn't mean you can't take longer or replace more frequently.

The IRS apparently has some pretty specific rules about roofing (and HVAC, and other things). What an auditor told you at some point may not have been 100% accurate (given more as a rule of thumb to be extra careful than letter by letter to the law) and may have changed since then. The regs do go into more than just 'a few shingles' which doesn't even apply to all roof types. How many shingles is a few? What's if it's a tiny roof? A large roof? What if it's a tar roof? The regs go into all that and there is more room for expensing than most people realize (due to oversimplifications on forums like this).
BillHoo

Registered:
Posts: 63
Reply with quote  #10 
Interesting to see rerigerators and stoves are also on the 5 year plan.

I have a 15 year old fridge in one of my rentals.  Over the past 10 years I have had to replace:

- Door liner $140  (the whole inside of the door that holds the shelves)
- Pick out shelf $40
- Crisper drawer $40
- Cheese Drawer $60

The fridge works great.  I could probably buy a new one for about $400 - $600 and that would be a $75 to $100 depreciation credit per year.  But I would probably have to replace busted parts in that timeframe also.

My home fridge?  I have not broken anything in 20 years!

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Bill_H
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