Question

Should I depreciate or consider it a repair if I had an old unused trailer removed from a rental property?

Forum|Forum|1 year ago
February 17, 2025
1 reply
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This past year I had an unused trailer home removed from a rental property. The unused trailer was on the property when I bought it and was never used. It deteriorated and was an eye sore, so I finally removed it this year. Is the cost of this demolition considered depreciable since it did convey improvement to the land, since the eye sore was taken away, or is it an expense/repair and therefore should be expensed in the year the work was done. TY in advance.

D

DianeW777

No, this will be an expense that is added to the cost of the property and will reduce gain when sold in the future.

Demolition of building (trailer). Add demolition costs and other losses incurred for the demolition of any building to the basis of the land on which the demolished building was located. Don't claim the costs as a current deduction.