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Can I deduct a water well I drilled at my rental property?

Forum|Forum|7 years ago
June 5, 2019
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I drilled thinking it would benefit renter, but it was dry and I spent $10k to do it

TurboTax Business Windows

Best answer by view2

Generally a water well is a land improvement and depreciated 15 years.

If a test hole, dry hole, or dried-up well (resulting from prolonged lack of rain, for instance) is abandoned, you can deduct your unrecovered cost in the year of abandonment. Abandonment means that all economic benefits from the well are terminated. [Publication 225]

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view2Answer

Employee

Generally a water well is a land improvement and depreciated 15 years.

If a test hole, dry hole, or dried-up well (resulting from prolonged lack of rain, for instance) is abandoned, you can deduct your unrecovered cost in the year of abandonment. Abandonment means that all economic benefits from the well are terminated. [Publication 225]