One possible negative effect of segmenting and separating out your rental assets for depreciation, depends on how you state and your local county looks at it. For example, in my location the county assesses a yearly "tangible property tax" on anything they classify as "equipment" that is used to produce income.
So if I separate out my kitchen appliances and depreciate them over 5 years, my county considers that "equipment" that is used for the production of income. So they assess a tangible property tax on that "equipment" each and every year. The tax assessed far exceeds the so-called "savings" I get by depreciating it separately over 5 years.
Practically every county in my state of FL does this. So it's kinda dumb to segment/separate out rental property assets if you don't have to.
Many think the county will never find out about this, since FL does not tax personal income and therefore no state tax is filed. But it bites you big-time when you sell the property and then go to record the sale at the local county courthouse. They will not complete the title transfer until "after" you have paid those back taxes, along with the fines, penalties and interest for not having reported and paid it over the years you owned, used, and claimed those appliances as rental assets. So there goes all that profit you expected to make from the sale.
