RV Park - Replaced/ upgraded park electrical

[jeffmcpa2010]

Client owns an RV park. 2022 replace / upgraded electrical to the camp sites to the tune of about 75 K. Most of revenue is transient, not full timers.

I've done some googling etc. trying to get a consensus between the left and right have's of my brain on what I should use for a depreciable life. I have seen some saying 39 years, some saying 27.5 (which I don't think makes sense myself as I don't see this as residential rental property) Some saying 20 years (Land Improvements) which kind of makes sense as that is where it seems that water and sewer lines to the sites would be classified.

What say you?

Thanks everyone for your help.

Jeff

[Camp1040 · Accepted solution]

If the electrical upgrade were to a structure I would vote 27.5 or 39 depending on which class.

👍Since the upgrade is to each camp site my vote is for land improvement!

[dkh]

I agree with depreciating as Land improvements

[TaxGuyBill]

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@jeffmcpa2010 wrote:

Most of revenue is transient,

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That rules out 27.5 years.

I lean towards land improvements (15 years) or as a specialized individual hookup (possibly 1245 property), it could be less, such as 5 or 7 years.  Both would qualify for Bonus.

[jeffmcpa2010]

Thanks Everyone I was leaning land improvements (miss typed when I said 20 years above)

Having 3 other wise soul's also leaning that way give's me the comfort I was looking for. Appreciate you taking the time to chime in.

Jeff