Are there any downsides to using a faster depreciation schedule on the aforementioned items?
Depends on your point of view.
Keep in mind that depreciation is not a permanent deduction. When you sell the property you are required to recapture and pay tax on all depreciation taken. One thing to keep in mind about that.
1. Recaptured depreciation is added to your AGI in the year of sale. This has the potential to bump you into the next higher tax bracket. Weather it does or not, depends on the numbers and some other factors.
Typically, anything that becomes "a permanent part of" the structure is classified as residential rental real estate and depreciated over 27.5 years. Now in my view, built in kitchen cabinets become a permanent part of the structure. But the IRS pubs do state they can be classified differently under MACRS and depreciated faster. (in my personal opinion, that would include new countertops).
However, I prefer to keep my depreciation as low as I legally can, so as to reduce the chance a future recapture will bump me into the next higher tax bracket. Buy that's just my preference. Your preference may (and can) be different.
