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gryzik

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Posts: 23
Reply with quote  #1 
Case:
1. Got raccoon in crawl space in my rental property ( house is 14.5 years old)
2. Trapping and removal of the animal $200
3. Restoration of the crawl space costs:
    a.Vapor barrier removal and replacement $400
    b.  Insulation removal  $400
    c.  New insulation install $800
    d.  Removal of Feces  $100
    e.  Decontamination. Sanitization. Waste disposal  $200
    f.   Duct replacement  $900
    g. Duct cleaning and sanitization $180

Question: How do I classify all of the above : i.e. what  can I deduct in one year as repair, and what do I need to depreciate.

It is not an improvement  to start with.
My take is that I can deduct in one year at least   #2; #3 b,d,e and g  as  maintenance.

I am not sure about 3a, c, and f. Can it be deemed as repair as I restore the crawl space to its original state?

Another scenario I have in mind for 3a,c, and f( insulation, vapor barrier & duct install) is as follows:
1. At this date cost of install  of insulation and duct is  $2100 based on the prices given above.
2. House is 14.5 years old. So original residual cost fraction is (27.5 -14.5)/27.5= 0.47
3. In dollars residual cost is $2100 * 0.47=$990 - so  I will take as deduction for this year as this what was destroyed by raccoon and I am restoring it.
4. The remainder of $2100  duct and insulation cost ( $2100 - $990= $1110) I will depreciate over 27.5 yrs as this is what I "gained" installing new duct, vapor barrier and insulation.

I would highly appreciate opinions of this forum.
Thank you for your time and help.
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