I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

Forum|Forum|6 years ago
July 30, 2019
4 replies
0 views

No text available

TurboTax Premier Online

DoninGA

Employee

Appliances are rental assets to be depreciated. On the Rental Summary screen add the appliances as an asset.

Rental Summary - Assets and Depreciation.JPG

pearl12970Author

I thought you can deduct appliances (assets) under $2,500 if you purchased it for a rental , based on the new 2018 Tax rules? I don't know where and how to deduct it.

Under rules that go into effect for tax year 2018, you can also deduct more expenses under a section of the tax law known as Section 179. Under the new rules, you can do this with up to $1 million in new property used for certain allowable business uses, including providing lodging to your tenants. This property can include appliances, such as refrigerators, and furniture, such as beds.

Hal_Al

Employee

See

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

Carl11_2

Employee

For rental property assets, they are normally capitalized and depreciated over time. Appliances would be depreciated over 5 years. However, for qualifying assets that cost less than $5000 you have the choice to either capitalize and depreciate, or to just deduct the full cost as an expense in the year of purchase. Appliances that cost less than $5000 qualify to be expensed.

When working through the rental expenses section, the very, very, very *VERY* last screen of that section is for miscellaneous expenses not covered in other expense categories. Just enter your appliances there and the cost, click Continue and press on.

Overall, depreciating the appliances over 5 years will have minimal affect on your tax liability (if any at all due to every increasing carry forward losses) so I suggest you just expense them. That way, the expense is carried forward and unlike depreciation does not have to be recaptured when you sell the property in the future.

pearl12970Author

Thank you Carl.

dkashlan

Can you deduct the new appliance if bought to replace a damaged appliance due to tenant abuse?

Critter-3

Of course ... if you have the old appliance listed as an asset then you need to retire the old asset and enter the new one.

dkashlan

Remember, this appliance was damaged due to tenant abuse. The tenant claims it is a depreciable asset and since it exceeded the allotted 5 years depreciation by the IRS, then I should have it changed anyway.

Thanks, in advance.

Vlad032

Off the subject: Tenants should not dictate or get involved into your business (taxes, etc).

I hope you got a better ones.

Labby1

Is the expense option a total amount or the amount per appliance? In 2021 I had the kitchen remodeled in my rental; the total for appliances was $3100 but no appliance was over $800 each.