Expiring IRS 50% Deductions--should I Buy Up A Storm?

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I've seen some discussion about the expiring 50% deduction for buying (new) property for a business. I've already spent a few thou on some new fridges, windows, flooring etc. for some rentals I bought. It's my first year at this, so I won't have much R.E. income, maybe $8-10,000 from payments on 2 houses I sold on CDs and rental income for a few months.

Does it make sense for me to buy more stuff and possibly [pay 10% down to encumber some roof work--which I'll need anyway, and am planning for spring--to get the deduction? If I don't have enough income, can the deductions be carried over to future year(s)?

Comments(1)

  • blueford2nd December, 2004

    Bonus depreciation is only for property with a life of 10 years or less. So, for a rental, the only items that would qualify would be things like appliances & carpet.

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