Depreciation on Appliances & Generator

[n1njah]

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.

[tagteam · Accepted solution]

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

[n1njah]

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

[tagteam · Accepted solution]

7-year recovery period.

[Critter-3]

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

[n1njah]

Thank you

[leeloo]

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.

[tagteam]

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@leeloo wrote:

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

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

[leeloo]

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

[tagteam]

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@leeloo wrote:

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

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That was settled in this thread weeks ago.