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Strategies & Market Trends : The Residential Real Estate Crash Index -- Ignore unavailable to you. Want to Upgrade?

To: redfish who wrote (35270)	7/13/2005 1:45:34 PM
From: Tradelite	Read Replies (1) \| Respond to of 306849

re:<<useful life of one year or more>> Not exactly, from my reading of IRS Publication 523. I can see that the list of acceptable capital improvements for tax purposes is just as confusing as it used to be and when I last looked at it. Although that phrase "useful life of one year" is used at one point in the book, it appears to apply to something new, not something merely replaced. If a homeowner paves a NEW driveway, instead of fixing or replacing an existing driveway, it would count as a capital improvement. (I gather from the instructions) If a homeowner installs air conditioning for the first time, this is a capital improvement. Otherwise it's just a repair. (I gather) Excerpt from Publication 523.. Improvements. These add to the value of your home, prolong its useful life, or adapt it to new uses. You add the cost of additions and other improvements to the basis of your property. Examples. Putting a recreation room or another bathroom in your unfinished basement, putting up a new fence, putting in new plumbing or wiring, putting on a new roof, or paving your unpaved driveway are improvements. An addition to your house, such as a new deck, a sunroom, or a new garage, is also an improvement. The following chart lists some other examples of improvements.......