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Income tax treatment of sales tax on improvement to rental property

Asked Mar 15, 2007, 05:51 AM — 3 Answers
For income tax purposes, major improvments to my rental property must be depreciated over a period of years.

Can I take the sales tax on those improvements as a deduction in the year of the improvement, or must the sales tax amount be included in the depreciation schedule?

Thank-you,

Annette

3 Answers
taxsearcher's Avatar
taxsearcher Posts: 222, Reputation: 39
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#2

Mar 15, 2007, 06:31 AM
They need to be added to the basis and depreciated.
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achakerian's Avatar
achakerian Posts: 3, Reputation: 1
New Member
 
#3

Mar 15, 2007, 07:06 AM
Quote:
Originally Posted by taxsearcher
They need to be added to the basis and depreciated.

Thanks-you!
Helpful
AtlantaTaxExpert's Avatar
AtlantaTaxExpert Posts: 19,866, Reputation: 3723
Senior Tax Expert
 
#4

Mar 18, 2007, 06:31 PM


Agree with TaxSearcher!
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