Rental Property Expense

[Leg-Ken]

My town required me to remove my septic system and connect to the town sewer line on my rental property.

On my Federal taxes, is the cost a:

Repair, Maintenance, or Capital Improvement?

Ken

 

[LdiJ]

My town required me to remove my septic system and connect to the town sewer line on my rental property.

On my Federal taxes, is the cost a:

Repair, Maintenance, or Capital Improvement?

Ken

I would likely call that a capital improvement. How much did it cost?

 

[Taxing Matters]

On my Federal taxes, is the cost a:

Repair, Maintenance, or Capital Improvement?

Repair and maintenance are basically the same thing. This isn't that. It's a capital improvement.

 

[FlyingRon]

And I take it since you knew to ask that you know that capital improvements don't get deducted directly, they need to be depreciated.
Don't forget to separate out the actual charges for using the sewer (monthly or whatever) from the costs of the removal/switch.

 

[FarmerJ]

Now that you have a new system if you had not done it before then put into writing to the tenant that they will be charged for damage caused be feminine hygiene products and wet wipes even if the wet wipes say septic safe its a crock of POO every group home I work in where those wipes were used had had nasty clogs and back ups and I know of one place where the pump in the tank for the mound system had burned out because it got so clogged with wipes. hopefully they dont treat the new system as if it was city sewer and put a multitude of things in it that should not be .

 

[LdiJ]

Now that you have a new system if you had not done it before then put into writing to the tenant that they will be charged for damage caused be feminine hygiene products and wet wipes even if the wet wipes say septic safe its a crock of POO every group home I work in where those wipes were used had had nasty clogs and back ups and I know of one place where the pump in the tank for the mound system had burned out because it got so clogged with wipes. hopefully they dont treat the new system as if it was city sewer and put a multitude of things in it that should not be .

The OP's thread was about being required to switch from a septic system to a sewer system...the OP is now on a city sewer, not the other way around.