Listing assets for rental house

Forum|Forum|1 year ago
February 15, 2025
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My rental sat empty for 6 months in 2024 due to major renovations. Trying to determine how to enter assets. Example:

1) I purchased 5 ceiling fans on different dates, between April 2024 and May 2024 while the house sat empty. I also purchased several light fixtures, and these were also on different dates between April and May. An electrician installed the fans, installed new light fixtures, and also added electrical outlets in June 2024. The In-Service date for the house to be rented is September 2024. Can I list all 5 fans together as one asset purchase and put date of purchase as May, when the last fan was purchased? Can I do the same with all the light fixtures purchased? I don't have to list each purchase separately do I? How do I enter the work the electrician did? He did not give me a breakdown of his work, just a total price for all the work. The In-Service date of course is September. Also, these are depreciated assets, and not repairs. Is that correct?

2) Since the house sat empty for 6 months do I list the number of days it was a rental as 183 or as 365?

PatriciaV

Employee

Yes, you can combine all these costs under one asset for depreciation since they were placed in service on the same date. As long as the work (and new fixtures) restored or added value to the property, you are recording an improvement.

You may be able to deduct your costs under the Safe Harbor Election. See Tangible Property Regulations-Frequently Asked Questions for more information.

If the property was listed as available to be rented for the entire year, you would enter 366 rental days (for 2024). However, if you took the property off the market while you made these renovations, you would report only the time after it was again listed as available to be rented.

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