Bought a small condo in 2013 and have been renting it out.
In 2016 I had the shower redone (30+ year old condo), cost about 3K and a "refresh" on the kitchen--new countertops, sink, etc. (about $1500). I'll call these the "refresh."
Well the new shower leaked so in 2021 I had the bath completely remodeled and I also had the kitchen completely remodeled. Cost was about 10K each. I'll call these the "gut."
I had been depreciating the 2016 refreshes. I was doing 5 years on the kitchen and 27.5 years on the bathroom.
My CPA (initial free consult) told me to "shut down" the first ones. Does that mean I can depreciate the balance on the refreshes plus start with the price of the guts in 2021? Or does that mean I cannot depreciate anything anymore on the refreshes effective 2021?
Thanks and I hope this is not too confusing.
In 2016 I had the shower redone (30+ year old condo), cost about 3K and a "refresh" on the kitchen--new countertops, sink, etc. (about $1500). I'll call these the "refresh."
Well the new shower leaked so in 2021 I had the bath completely remodeled and I also had the kitchen completely remodeled. Cost was about 10K each. I'll call these the "gut."
I had been depreciating the 2016 refreshes. I was doing 5 years on the kitchen and 27.5 years on the bathroom.
My CPA (initial free consult) told me to "shut down" the first ones. Does that mean I can depreciate the balance on the refreshes plus start with the price of the guts in 2021? Or does that mean I cannot depreciate anything anymore on the refreshes effective 2021?
Thanks and I hope this is not too confusing.