Asset Depreciation for an engine

[david-r-mullinax]

I purchased a new engine for a lawnmower in 2016, and I use it on some rental property I own.

Question #1: I can use this under "Assets/ Depreciation" instead of writing it off as an expense, correct?

Question #2: In the "Describe this Asset" section, this should be classified as a "Tools, Machinery, Equipment, Furniture?"

Question #3: In the section "Tell Us a Little More", is this a "General purpose tools, machinery and equipment" or is it "Construction machinery and tools?"

We need more examples here.

[KatherineC · Accepted solution]

Yes, you can certainly choose to depreciate the engine. 

Yes, it should fall in the “Tools, Machinery, Equipment and Furniture” category.  And it would fall in the “General purpose tools, machinery and equipment category”.

For 2016 you are allowed to take bonus 50% depreciation.  There is also an argument for you to expense the amount as a repair.

BUT, if your aim is to have a consistent expense write off over the next number of years, then you may want to decide against either of these options and opt for regular depreciation with no bonus depreciation.