AnnetteB6
Expert Alumni

Investors & landlords

It would be better to separate the items and enter them as Assets for depreciation.  If you depreciated the entire remodel as one Asset, it would be considered a component of the condo and would be depreciated over 27.5 years.  If you separate the items from one another, things such as the appliances are depreciated over a shorter span of 5 years.

 

If you are planning to sell in the next few years, it would probably be better to depreciate over time so that you would not have to possibly recapture some of the section 179 deduction.

 

If you were at the condo doing the work for the remodel, then the costs of your Airbnb, transportation, and meals would make sense as a rental expense.  If you were just there to supervise and oversee the project, it is more difficult to justify the deduction.

 

You would not list the $31,000 as a miscellaneous expense if it were already included in Assets for depreciation.  That would be claiming the expense twice.

 

Other miscellaneous expenses could include anything not shown in the other categories.  For example, credit card fees, bank charges for your rental business account, HOA dues, lawn maintenance, alarm monitoring, or any number of things not previously included in another category.

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