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TomCopeland 07:38 AM 05-01-2012
Originally Posted by Abigail:
We have gotten quotes to pour a concrete walkway for the daycare parents to use to enter through the side door. They have always come through the side door, but we've been killing the grass over the winter and now it's time to pour a walkway. It's going to cost $1,500 and the only reason we're doing it is so the grass doesn't continue to die. We're pouring it from the driveway to the side door. Please tell me what kind of expense this is and how to handle it. Thank you!
This is a land improvement (since it's an item that is attached to the land and increases the value of the land). If the walkway is only used by your business, it's 100% business. It sounds like it may be used 90% or so for business, in which case, claim 90% or so of the cost. Depreciate it over 15 years.

In 2012 there is a 50% bonus depreciation rule that allows you to deduct 50% of this cost in 2012 and depreciate the rest over 15 years.

Congress may change the 50% rule later this year to a 100% rule. So, we won't know exactly how to depreciate this until later in the year.
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