Depreciating Kitchen Items In a Rental

Forum|Forum|1 year ago
September 24, 2024
2 replies
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Our daughter has renovated part of an apartment that she uses as a rental. I believe that kitchen items, like stoves, refrigerators, dish washers, etc. are not capitalized and depreciated over 27.5 years, because their useful lives are much shorter. Is there an exact number of years (5, I have read somewhere) which the IRS accepts?

Bsch4477

Employee

On average, kitchen appliances such as refrigerators, stoves, and dishwashers have a depreciation life of 10 to 15 years.

Anonymous_

Employee

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ademinimis

She may be able to make an election using the de minimis safe harbor for items costing $2,500 or less which would allow her to immediately deduct the cost of one or more of those assets.

GGBJrAuthor

As I read the de minimus instructions, my daughter would not have to capitalize the purchases, but could expense them. If she has an AFS (applicable financial statement), she could expense up to $5,000 per item. But, what is an AFS? Is this an invoice? Would it have to be submitted with her tax return? How does one do this if e-filing the return?

Also, does she have to prove to the IRS in some way that she qualifies for a de minimus status?

Thanks so much for your response to such a complicated subject!