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Phil Contreras
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New Roadway - Cost Segregation or Depreciation?

Phil Contreras
Posted

Good day all,

We've installed a new driveway that costed $9,000. The old driveway was 40 years old and needed major repair.

Can I tax depreciate this item in my personal tax? or is this cost segregation?

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Ashish Acharya
#2 Real Estate Success Stories Contributor
  • CPA, CFP®, PFS
  • FL
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Ashish Acharya
#2 Real Estate Success Stories Contributor
  • CPA, CFP®, PFS
  • FL
Replied

You have to capitalize and depreciate. You can take bonus depreciation (80% write-off) as a land improvement. 

Cost seg is not needed. 

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