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March 23, 2020
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Item purchased before rental property was put into service but installed after.

  • March 23, 2020
  • 1 reply
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I purchased a new garbage disposal for my rental property before I put my it into rental service. I didn't have it installed by a plumber until after the property was placed on the market. How do I depreciate it?

Best answer by ColeenD3

Start depreciation from the time it was installed.

 

Please see this answer from Hal_Al:

 

It's an improvement and is depreciated over 27.5 years.

 

However, there is a relatively new tax break that will allow you to elect to deduct it all this year.

You can still use the  De Minimis Safe Harbor election for improvements Up to $2500.

 

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

1 reply

ColeenD3
ColeenD3Answer
March 23, 2020

Start depreciation from the time it was installed.

 

Please see this answer from Hal_Al:

 

It's an improvement and is depreciated over 27.5 years.

 

However, there is a relatively new tax break that will allow you to elect to deduct it all this year.

You can still use the  De Minimis Safe Harbor election for improvements Up to $2500.

 

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