Tanks for your reply!
I will not able to use "Safe Harbor Election for Small Taxpayers" as I already used for Appliance.
We got a loan for 15 month without interest in 2024 and Windows were installed in 2024 also, once the tenant had already moved in.
We paid $4000 in 2024 and the remaining will be paid off in 2025. Again Its Interest Free if it paid in 15 months.
Now, Do we need to add total loan amount $12000 as depression for 27.5 years or we need to
divide them in 2024 and file depreciation again in 2025 for remaining balance? Or because we did not paid any interest then it can not be depression??
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Years to fully depreciate
27.5 years
MACRS Convention: MM
Depreciation Method: SL
Cost / Cost basis
$12,000
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I'm confuse on this part:
"The loan payments are not rental expenses in any year. Next year, you can report the interest portion of any payments that include interest on the loan balance. Since you paid no interest on the loan in 2024, you would not report any interest expense for the loan this year. "
Be of Capital Expenditure: Since the windows are a capital improvement to your rental property, they generally need to be depreciated over time rather than expenses in one year.
https://www.irs.gov/faqs/sale-or-trade-of-business-depreciation-rentals/depreciation-recapture/depre...
But There is no information any where about Loan or how to enter them correctly.
