Re: tax deductible

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You can deduct the $500 deductible you paid on your 2007 tax
return. However, it should technically be depreciated over
27.5 years because it is related to a capital improvement. You
may want to consider just deducting it as a repair to save you
the trouble of keeping track of the depreciation. Multiply
your tax bracket percentage (e.g. 25%) by the $500 to see how
much tax you actually save.

On 3/09/08, Neej wrote:
> For 2007, I had hail damage on my rental income property.
>
> My insurance policy covered the repair of my roof but had
> a $500 deductible (which I paid).
>
> What is tax deductible?
>
> A) the $500 insurance deductible
> B) the entire cost of the roof repair (~6,000)
> C) none
>
> Can I deduct the correct above amount for 2007 or do I
> have to depreciate it over 27.5 years?
>
> Thanks