Hi. The following is for a rental condo I own that I spent about $15,000 on between tenants last summer.
I had new kitchen-cabinets/countertop installed, did a lot of repairs in the unit, had new flooring installed, and bought some new appliances. There are about 100 receipts all less than $2500 (various purchases from different stores and contractors). I was thinking of grouping all flooring materials/labor together and consider that 27.5-year depreciation. Same with kitchen cabinets/countertops materials and labor. But it seems like I would be doing myself a disservice if I didn't separate the stove and refrigerator out of the receipts to either de-minimus expense or depreciate (with special depreciation option) at a 5-year rate. Would you agree that I...
1. Should not separate out costs of flooring, sink, cabinet boxes, etc. as de minimus expenses and instead treat as a subtotal to the total cost of the improvement (flooring and cabinet improvements) at 27.5 year real estate property depreciation?
2. Could separate out some goods bought (e.g., appliances)?
3. For question 2, if I can separate those appliances from the kithen cabinet improvement could I then use de minimus expensing (adhering to proper de minimus criteria) instead of adding it as an asset (appliance, 5-year depreciation)?
