Welcome Guest. Register Now!  



Reply
 
LinkBack Thread Tools Search this Thread Display Modes
  #1 (permalink)  
Old 03-07-2018, 04:42 PM
Junior Member
 
Join Date: Mar 2014
Posts: 6
Lead Paint Abatement? Capitalize Or Expense

I have a rental house where the tenants young child got sick, went to Dr., determined high lead level in blood, so County and State health Departments got involved. I was ordered to have Lead Abatement done on the house (over $20,000). Lead Abatement done and house got certified. Can I deduct the $20,000 plus cost as expense? I thought I read in IRS instructions several weeks ago that I could but now I cannot locate the reference. I also got a $5250 (note to be forgiven if I comply with a few rules for 2 years) in addition to the $20,000 plus cost I incurred.
I find old references where they advise to Capitalize but on the current IRS document I found I thought they said those costs could be expensed?
Advice please and refer me to the publication. Thanks if you will help.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
  #2 (permalink)  
Old 03-08-2018, 01:28 AM
Moderator
 
Join Date: Oct 2010
Posts: 5,134
I have a rental house where the tenants young child got sick, went to Dr., determined high lead level in blood, so County and State health Departments got involved. I was ordered to have Lead Abatement done on the house (over $20,000). Lead Abatement done and house got certified. Can I deduct the $20,000 plus cost as expense?=========>I do not think so ? it needs to be capitalized fro the next several years.


I thought I read in IRS instructions several weeks ago that I could but now I cannot locate the reference. I also got a $5250 (note to be forgiven if I comply with a few rules for 2 years) in addition to the $20,000 plus cost I incurred.
I find old references where they advise to Capitalize but on the current IRS document I found I thought they said those costs could be expensed? =========>I believe that you need to capitalize the costs . there is a similar case as following:" The cost of removal of asbestos incident to the repair of production plants and machinery is not deductible as a current expense and must be capitalized under I.R.C. section 263."


Advice please and refer me to the publication.======>you may refer to I.R.C. section 263.



Digg this Post!Add Post to del.icio.usBookmark Post in TechnoratiFurl this Post!Reddit! stumble!bookmark in google!Share on Facebook!
Reply With Quote
Ads
Reply


Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

vB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
capitalize vs expense shm1133 C-Corporation 2 12-01-2016 02:14 PM
Form 843 & Penalty abatement juro For 2014 1 06-01-2016 09:16 PM
What are the circumstances that would lead the IRS to consider a taxpayer's behaviour to indicate fraud? TaxGuru General 0 01-31-2012 03:15 PM
Interest abatement spirit3 Miscellaneous 1 08-04-2011 12:13 AM
would a1099M error correction lead to Audit acg101 Filing Requirements 4 03-03-2008 05:05 PM

Follow us on Facebook Follow us on Twitter Google Buzz Rss Feeds

» Categories
 
Individual
 » Income
 » IRA/Sep
 » Medical
 
Corporations
 » Payroll
 
Forum for CPAs
 
Financial Planning