when should an item be entered on the depreciable assets page?

Forum|Forum|2 years ago
March 22, 2024
2 replies
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I run an airbnb. How should I categorize small ticket items such as a $100 Keurig machine or a $50 knife block? Is there a dollar amount when an item should start being depreciated as a depreciable asset on the assets page?

AnnetteB6

There is not a particular dollar amount where it becomes more necessary to claim depreciation on an item. Instead, you need to consider the useful life of the item in question.

Things such as a knife block and Keurig machine may have a useful life of under a year. If that is the case, include the cost of these items as an expense instead of a depreciable asset. You can enter the cost as a 'supply' expense.

Here is how TurboTax defines a rental supply expense:

Supply expenses are items you used for your rental property that cost $200 or less or last less than a year.

Also, take a look at the following TurboTax help article to learn more:

What is depreciation?

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pbmunkeyAuthor

Employee

I have a lot of items that are $200 or less, such as blow, dryers, and irons, and other things that have a useful life of under one year. Should I classify them as “supplies” along with my regular supplies, such as toilet papers and cleaning supplies or is it better to put them under misc expenses?