Can joint owners of an LLC for investment/recreational property deduct the cost of a home renovation?

by Colleen S. Krcelich, CPA | Jun 25, 2018
askacpaicon I have two partners in an LLC. The only thing we do with the LLC is jointly own an investment/recreational property that we use. Can we deduct the cost of a $30,000 home renovation?

A home renovation is normally considered an improvement, and it is depreciated over 27.5 years for residential rentals. You also need to consider the amount of time the property is used as a rental property vs. the amount of time the property is used by the LLC members for their own pleasure. If the property is not used personally, it would be fully depreciated over the 27.5 years.

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Answered by: Colleen S. Krcelich, CPA, is an adjunct professor at Northampton Community College in Bethlehem, Pa. 

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