Hi all,
Say I had an IP for about 2 years.
I'm about to renovate completely the kitchen, and it's going to cost me $10,000.
Questions?
1. If I borrow this $10,000 from my separate LOC, is the interest of this loan is tax-deductible? (say if I paid out this $10,000 in 15 years, then the interest for this loan is tax-deductible for these 15 years)?
2. Since it's an improvement (rather than repair), so I cannot claim this expense immediately. So I have to put this expense into depreciation schedule (update the depreciation schedule). Is this correct?
Thanks.
Say I had an IP for about 2 years.
I'm about to renovate completely the kitchen, and it's going to cost me $10,000.
Questions?
1. If I borrow this $10,000 from my separate LOC, is the interest of this loan is tax-deductible? (say if I paid out this $10,000 in 15 years, then the interest for this loan is tax-deductible for these 15 years)?
2. Since it's an improvement (rather than repair), so I cannot claim this expense immediately. So I have to put this expense into depreciation schedule (update the depreciation schedule). Is this correct?
Thanks.