Bonus Depreciation
I have 2 rental houses and in one which I had to replace kitchen cabinets ($13,900) and carpet ($5,094) in 2023. I couldn't use Section 179 for 100% depreciation this year since I'm showing a loss, so I'm using the special bonus depreciation in TT which is 80% for 2023. My total repairs/expenses for this house in 2023 on Schedule E are over $30,000 some of which will fall in the De Minimis category. It was my concern that since the total repair expense is over the $10000 (or 2% of the house) that I would be denied the bonus depreciation allowance for these 2 assets. My questions:
** Is there a $10,000 total expense limitation on bonus depreciation allowance as in Section 179 or is it waived for the special depreciation allowance?
** I entered these 2 assets and selected 80% depreciation allowance and TT actually provided the full 80% depreciation for this year and posted it on Schedule E, contrary to everything I've read. Am I OK taking 80% depreciation for 2023 as TT provided me with?
Thank you,
