Garage Door - Repair or Improvement?

Question

All,

I recently replaced a garage door in one of my rental units.  Just trying to figure out if it's an expense or a depreciable asset.  We replaced the door with the same quality and it was $750 (so not too expensive).  As to whether the existing garage door had reached it's useful life, I think you could argue either way.  It looked in good condition and all of a sudden cracked beyond repair.

Just looking for schools of thought on this.  Thanks!

Dave Toelkes · Answer

@Justin B.

Technically speaking, anything with a life greater than one year that you replace is a capital improvement and is depreciated.  However, there is a de minimus rule that allows replacements costing $100 or less to be expensed.

The garage door is an integral component of the rental dwelling structure and as such its replacement cost would be depreciated over 27.5 years.

Steve Babiak · Answer

This is a capital item and would be depreciated. The useful life of the previous door had been reached if it cracked such that it could not be repaired.

But let's summon those with more expertise for their opinions: @Steven Hamilton II , @Charles Perkins , @Bill Walston ,

Dave NA

Kyle Hipp · Answer

de minimus amount changed to $500 if you declared that in 2014 I believe. Since it is over and it sounds like you replaced the whole garage door it should be depreciated. If it was one or two panels that needed replacement because of damage that could be an expense.

Armo NA · Answer

Hey Justin,

i think that you got a great deal. 750 is a good price (was it low quality?)

However, not like a TV or a computer, i think a garage door just needs basic repair. Since you didn't describe the problem it had i can speculate as to the price but must repairs should cost about 200-300.

There are a lot of very good service providers in maryland (were neighbors ;) ) - last repair i needed i contact BBB Garage doors, they gave me a great price.

Something to consider for the next time ;)

George P. · Answer

normally, anything that is part of the structure, i consider and book as a depreciation item.. stuff like doors, cabinets, bath tub, roofs, etc.

Steven Hamilton II · Answer

Basically under $500 you can now expense.  Over that depreciate unless it is a specific "expense"

William Murrell · Answer

I'm not a CPA, but based on my experience with some of the things we've depreciated I'd imagine you'd be able to get away with it.  I think that it would just end up being depreciated over a much shorter time frame, like 7 or so years.  Just my $0.02

Justin B. · Answer

Hrmm...No one? :)

Garage Door - Repair or Improvement?

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