Question

Rental house appliance expense percentage

Forum|Forum|4 years ago
April 11, 2022
1 reply
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I looked through the similar topics but did not see......

We purchased a new refrigerator for our rental property.

When I entered the cost as an "expense" (not a depreciated asset), the top display Tax Due/Refund only changed by 10% of the $750 I entered.

Why?

I also can't find a chart of which expenses for rentals or business (we have multiples of each) are deductible at any given percentage. is one available somewhere?

Thanks

I also can't find a

TurboTax Home & Biz Windows

I

ImTaxedAuthor

I'll add that the expenses did NOT zero the reported income from that rental.

It is showing a 9K income for 2021.

A

AnnetteB6

When you entered the cost of the refrigerator as an expense, it reduced the overall income reported from your rental property. That in turn, reduced the taxable income reported on your return. Therefore, you are paying less income tax after entering the expense.

If your refund went up by about 10% of the cost you entered, then your income is either in the 10% tax bracket or it affected any number of other items also included on your return.

Rental expenses do not affect your bottom line dollar for dollar. They can only reduce your taxable income.

There is not a chart for the percentage that a deduction may be taken for a rental expense. You are deducting 100% of the cost of the refrigerator.

@ImTaxed

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