Parking Lot Sealcoating Depreciation

Parking lot sealcoating helps to project a positive image of the company facility or residential complex.

Parking lot sealcoating depreciation. A business owner can take a depreciation off his taxes for a paved driveway he put in to improve his facilities. Taxpayer asserts that the parking structures are land improvements with a 15 year recovery period and 150 declining balance method of depreciation under gds while the irs asserts that the parking structures are buildings. Accordingly the issue is whether these parking structures are buildings or land improvements for depreciation purposes. Section 1250 affects very few assets today.

Thus we would treat the parking lot sealing repair work as an expense and capitalize the re pavement work. Because of this the taxation of recaptured depreciation as ordinary income is increasingly rare. How is a parking lot classified. Now that the differences between sections 1245 and 1250 have been established where does a parking lot fall.

Can a parking lot depreciation be deducted on taxes. It s important to give you an idea of exactly what the tax benefit is in simple non accountant words. That doesn t make sense it should be cost divided by years of depreciation 15 years so tha. Slower oxidation sealcoating fills surface voids which reduces exposure to oxygen and uv rays and reduces the depth to which oil or gas can penetrate the pavement.

I added a land improvement asset and tt calculated 750 for my expense yes i am still doing my 2015 taxes. Depreciation on asphalt sealcoating equipment. The internal revenue service provides a thorough guideline for determining the amount of appreciation and by following its rules the process becomes a matter of plugging the correct information into the correct form. This depends on how you classify the nature of the new paving.

I added a 15 000 parking lot late last year sept. In accordance with the irs publication on business expenses and rental expenses this can be treated either way. We touched on depreciation of asphalt sealcoating equipment in our smart ways to save money in your asphalt business this season article but did not go into detail. Grade level surface parking area usually constructed of asphalt brick concrete stone or similar material.

If the lot was partially paved and only parts need to be replaced then you likely have sufficient basis to treat it as an expense. Category includes bumper blocks curb cuts curb work striping landscape islands perimeter fences and sidewalks. See attachment for asset summary. 00 3 land improvements 15 years.