Question

Support Beam Repair

Forum|Forum|1 year ago
August 12, 2024
2 replies
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I have a rental property where my contractor discovered the support beam is twisted. The foundation company will be replacing the failing piers that are currently holding up the support beam and re-anchor them.

The cost of the project is $5400.

Is this considered a repair, and if so, is the entire $5400 deductible in the year it was spent?

TurboTax Home & Biz Windows

M-MTax

If it's treated as a repair then it's deductible in the year you paid for it.

M-MTax

This could be viewed as an improvement though

M

mgc6288Author

I've heard both ways and reading the historical forum comments also suggests either direction.

I had the option of replacing the support beam but chose to keep the current one by contractor's opinion. So the support beam itself is the same.

The current piers are damaged, and because of their damage, the beam has started to twist. So we are replacing the current piers and then straightening out the beam.

I imagine foundation work doesn't normally add value to a property like a new roof can so my presumption is that it isn't an improvement. A roof has an expected life span whereas foundation either works or it doesn't.

My opinion is a repair where I can deduct the entire $5400 the same year this is done. Depreciating during high levels of economic inflation seem to reduce the value of the deduction over time so I'd rather take the expense now than wonder how much I really did "save" with my $200 deduction 10 years from now, let alone in 25 years.

O

Opus 17

Employee

An improvement, or betterment, extends the useful life of the property or one of its systems, or adds value to the property. A repair restores the property to as-is or as-was condition. Classical improvements are things like a new roof, replacement windows, or remodeling the kitchen. Classical repairs are things like painting, or fixing a hole the roof (without replacing the whole thing) or replacing broken kitchen cabinet doors with matching doors because of tenant damage.

I think this situation could be argued either way. On one hand, it's probably a long term problem that happened over time, and the work is needed to keep the property standing; on the other hand, you aren't remediating the entire foundation, just selected elements that have failed. I think you can take it either way.

M-MTax

My opinion is a repair where I can deduct the entire $5400 the same year this is done.

Just my opinion but that's they way I'd handle it if were up to me. It might be one thing if the expense were tens of thousands of dollars, but for $5400 I'd just deduct it immediately as a repair.