Rental depreciation

Forum|Forum|2 years ago
April 3, 2024
3 replies
11 views

Quick question if I may slip this in here at the last moment of (not-extended) tax season

I find and keep seeing conflicting information regarding what methods I can take, including bonus (not 179) on a $5000 fence and a $5000 HVAC on a Single Family Residence.

Anybody point to any IRS/CA literature, please?

Lacerte Tax

This topic has been closed for replies.

Best answer by TaxGuyBill

Land improvements (such as fences) are 15 year property and qualify for Bonus.

HVAC is considered part of the real estate, so it is 27.5 years and does not qualify for Bonus.

S

strongsilence

Level 10

179 not allowed for residential rentals.

IRS publication 946

4562 instructions

Your state might not conform to the IRS federal and bonus depreciation rules so you'll need to check those instructions too.

The rules aren't easy to understand. I hear ya!

T

TaxGuyBillAnswer

Level 15

Land improvements (such as fences) are 15 year property and qualify for Bonus.

HVAC is considered part of the real estate, so it is 27.5 years and does not qualify for Bonus.

S

strongsilence

Level 10

What is the de minimis safe harbor deduction amount?

Taxpayers with an applicable financial statement (e.g., audited financial statement) who file an annual election statement may deduct $5,000 per qualifying item under the de minimis safe harbor. For taxpayers without an AFS, the per qualifying item limit is $2,500.

1

11BusterAuthor

Level 5

Likely someone with a SFR would not be doing a certified financial statement, but guess it IS possible.

What is the de minimis safe harbor deduction amount?

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