@mk82 wrote:
What about a hot-tub/swim-spa?
And what if I only AirBnb for 3 moths out of the year?
Thank you!
When you place a property in service as a rental, you have to indicate a value for depreciation. The value for depreciation is the adjusted cost basis of the property, or the present fair market value, whichever is lower. The adjusted cost basis is what you paid for the property, plus the cost of permanent improvements (permanently attached to the land/building), but not including the cost of non-permanent items like most appliances. For anything that is already part of the property when you first offer it as a rental, it's all included under the one umbrella of depreciation based on cost basis or market value.
If you buy new appliances or make new improvements that are placed in service after the property is offered for rental, you can expense or depreciate them individually. But there are different rules for a property that is mixed personal and rental use and you have to allocate the cost, usually based on the number of days the property was rented.
