Is it possible to depreciate a parking lot for tax purposes?
Repairs of an existing surface can be treated as an expense for tax purposes.Replacement work would be capitalized and depreciated over time.We would treat the parking lot seal repair work as an expense.If the lot was partially paved and only parts need to be replaced, you have enough basis to treat it as an expense.The Tax Court recently ruled in favor of taxpayers who choose to expense parking lot sealant.You can reference the IRS publications.