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Level 3
posted Oct 12, 2022 3:13:21 PM

Depreciation on Appliances & Generator

Hello, question about deprecation. What is the useful life for appliances (stove in this case) and a generator? 

Generator is not attached to the building. Business is renting from a landlord (residential)

 

Thank you.

0 9 1035
2 Best answers
Level 15
Oct 12, 2022 3:51:46 PM

See Publication 946 (2021), How To Depreciate Property | Internal Revenue Service (irs.gov)

Level 15
Oct 12, 2022 4:40:33 PM

7-year recovery period.

9 Replies
Level 15
Oct 12, 2022 3:51:46 PM

See Publication 946 (2021), How To Depreciate Property | Internal Revenue Service (irs.gov)

Level 3
Oct 12, 2022 4:00:14 PM

Thank you. I found the answer for appliances, but there wasn't anything listed for a generator. My guess is 7 years as equipment as it's not an attached component of the building. If anyone can verify my guess it would be appreciated. Thanks

Level 15
Oct 12, 2022 4:40:33 PM

7-year recovery period.

Level 15
Oct 12, 2022 4:57:10 PM

7 years is the "catch all" category for anything that doesn't fit another category in the CLADR tables. 

Level 3
Oct 13, 2022 10:31:36 AM

Thank you

Level 8
Oct 23, 2022 11:33:32 AM

Appliances for rentals generally have a five-year life due to excessive wear and tear.

 

  1. 5-year property.

    1. Automobiles, taxis, buses, and trucks.

    2. Any qualified technological equipment.

    3. Office machinery (such as typewriters, calculators, and copiers).

    4. Any property used in research and experimentation.

    5. Breeding cattle and dairy cattle.

    6. Appliances, carpets, furniture, etc., used in a residential rental real estate activity.

    7. Certain geothermal, solar, and wind energy property.

    8. Any machinery equipment (other than any grain bin, cotton ginning asset, fence, or other land improvement) used in a farming business and placed in service after 2017, in tax years ending after 2017. The original use of the property must begin with you after 2017.

  2. 7-year property.

    1. Office furniture and fixtures (such as desks, files, and safes).

    2. Used agricultural machinery and equipment placed in service after 2017, grain bins, cotton ginning assets, or fences used in a farming business (but no other land improvements).

    3. Railroad track.

    4. Any property that does not have a class life and has not been designated by law as being in any other class.

    5. Certain motorsports entertainment complex property (defined later).

    6. Any natural gas gathering line placed in service after April 11, 2005. See Natural gas gathering line and electric transmission property, later.

Level 15
Oct 23, 2022 11:37:11 AM

@leeloo wrote:

Appliances for rentals generally have a five-year life due to excessive wear and tear.

A free-standing, whole house type generator would not be considered to be an appliance.

Level 8
Oct 23, 2022 11:38:43 AM

Exactly. It is machinery. However, the actual appliances are 5 year.

Level 15
Oct 23, 2022 11:40:50 AM

@leeloo wrote:

Exactly. It is machinery. However, the actual appliances are 5 year.

That was settled in this thread weeks ago.