Now I've known others to clasifiy a water heater as an appliance that gets depreciated over 5 years and then take the SDA on it so they could depreciate it completely in the first year. By my interpretation of the tax statutes, that's not right.
Which statutes did you interpret? I've read the main statute and it seems like a water heater would qualify for bonus depreciation BUT many authorities say that's not so and it needs to be depreciated as real estate. Anyway the statute is NOT AT ALL clear on that.....AND it hardly makes sense to take depreciation deductions on the likes of a water heater for a rental unit....an item that could cost as little as around $600 installed......over 27.5 years. What??? Take a $22/yr depreciation deduction? That's just nuts and I assume why they have bonus and de minimis in the first place.
