Our LLC bought a rental property in 2022 and replaced the tub with a shower unit (cost was $10,000). $5,000 was paid in 2022 and the other $5,000 in 2023.
Can I use bonus depreciation on this, or do I have any other options to expense instead of depreciate? (i.e. an accelerated method) I'm assuming not but thought I'd ask if there are any other options I'm missing.
Thanks in advance,
Kathryn
In order to qualify for the special or bonus depreciation deduction, certain criteria must be met.
Qualifying assets includes Modified Accelerated Cost Recovery System (MACRS) property with a recovery period of 20 years or less. This includes such property as computer equipment and office furniture but not the residential rental property itself.
Residential real estate has a useful life of more than 20 years.
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