How can I deduct the full cost of my new Fence?

Forum|Forum|3 years ago
March 26, 2023
1 reply
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I own a triplex rental apartment building and I installed a brand new vinyl fence that cost $9,800 in 2022.

Unfortunately, I cannot use the Safe harbor Election for Small Taxpayers for this improvement because I do not meet the 2% of the unadjusted basis requirement. The original cost of my building was $280,000 x 2% = $5,600

I would like to know if there is a way that I can deduct/expense the full cost of my new fence?

Thank you in advance,

David

Bsch4477

Employee

You would add the expense to your cost basis as a capital improvement.

DA248Author

Thank you for your response. How would I add the expense to my cost basis as a capital improvement in TurboTax?

Bsch4477

Employee

The cost of an improvement is divided up over the number of years you expect the asset to remain useful. You can deduct that percentage of the overall cost each year.