Depreciation Question on Home Costs

How is delivery and set up of a new or used home being brought into a park treated for accounting purposes? Is this considered an expense or does this have to be depreciated over 27.5 years as part of the home cost?

I feel it should be classed as transportation cost and expensed but this may not be realistic. My CPA feels it should be depreciated. Parks in my area offer to pay this cost to acquire new homes and class it as a marketing costs for customer acquisition, which of course would be an expense. I’m all for using my “park entity” to pay this marketing cost for my “home sales” entity.

Thoughts?

I hate the IRS and their tedious regulations, but unfortunately you probably will need to capitalize these costs and depreciate them per your CPA. My wife is a CPA and she said the same thing - eventhough she won’t admit it she is wrong a lot (and she says I am too - whatever), so I did some google ninja stuff and found this:

“There are many different kinds of business assets; for example, land, buildings, machinery, furniture, trucks, patents, and franchise rights. You must fully capitalize the cost of these assets, including freight and installation charges.”

My source: https://www.irs.gov/publications/p535/ch01.html#en_US_2015_publink1000208617

I think it’s an uphill battle expensing it. Sorry.

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Safely I think you should depreciate the trailer itself, transport, set up etc… because it is all used to set up and get the home in rentable condition. Over the 27.5 years
but other things like carpet if it is tackless for ex and appliances over a shorter time.
The boss man wants it this way :slight_smile: