the life for appliances in residential rental real estate is 5 years not 7. IRS pub 946 page 29
technically you should file form 3115 to change the life and get the deduction for the missed depreciation. for the amount involved, I wouldn't do it. if you override the TT depreciation you will not be able to e-file. TT can not handle situations where the business % changes. so what TT does is based on 64% business use for all years. so it multiplies the original cost by 64% =$666(?) and then subtracts the depreciation taken $404(?) (by the way, 666+404 do not add up to 1041 but 1070)= $262 and multiplied by 40% (depreciation factor year 3) which should give you $105. this is obviously wrong since business use was 100% for 18 and 19. can't say why TT says $75
with a $666 tax basis at the BOY and 64% business usage and using a 5-year life depreciation would be:
666 x .64 x .4 = 170 (1041-404)= 637 x .64 x .4 = 163
or with a 7- year life
666 x .64 x 2/7 = 122 (1041-404)=637 X.64 X 2/7= 116
