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    achakerian's Avatar
    achakerian Posts: 3, Reputation: 1
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    #1

    Mar 15, 2007, 05:51 AM
    Income tax treatment of sales tax on improvement to rental property
    For income tax purposes, major improvements 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
    taxsearcher's Avatar
    taxsearcher Posts: 222, Reputation: 8
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    #2

    Mar 15, 2007, 06:31 AM
    They need to be added to the basis and depreciated.
    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!
    AtlantaTaxExpert's Avatar
    AtlantaTaxExpert Posts: 21,836, Reputation: 846
    Senior Tax Expert
    		  
    #4

    Mar 18, 2007, 06:31 PM
    Agree with TaxSearcher!
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