Rental Property - Depreciation of Appliances

Forum|Forum|3 years ago
April 10, 2023
1 reply
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My wife and I purchased a property in 2019 that came with a refrigerator, washer/dryer, and AC/heat unit. We started renting the property in summer of 2021. For tax year 2021, I did not file depreciation on these appliances as I did not know I could do this.

In Tax year 2022, I would like to apply depreciation of my appliances to lower my taxable income but not sure the best way to go about doing it. One thing I believe I could definitely use for depreciation is the AC unit which I replaced after my tenants moved in during the summer of 2021.

Are there any issues with filing depreciation this year even if I did not file for depreciation in Tax Year 2021?

Thanks!

DavidD66

Yes, there are issues. You can't start depreciating an asset you purchased in 2021 in 2022. You will have to file an amended 2021 return to add the air conditioner. As for the appliances, if they came with the house, they would have been included in the cost of the house. So, unless you allocated a portion of your purchase price and deducted it from the amount you paid for the house when determining your cost basis for depreciation, your appliances are being depreciated along with the rest of the house.

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