So in theory, I could depreciate the personal properties items I purchased to run my rental unit, correct?
yes. But anything specifically classified as "Residential Rental Real Estate" flat out does not qualify for SDA or SEC179.
Just keep in mind the paperwork nightmare it can create, when something classified as an appliance for example, is damaged and needs to be replaced.
Generally, with things that cost less than $2,500 you can just expense them and be done with it. Much simpler than any depreciation scheme you might otherwise elect. For example, depreciating a $1K refrigerator over 5 years would only make maybe a $2-5 difference to your tax liability each year. Whereas deducting it under the safe harbor deminimus act would allow you to just deduct the $1000 in full the first year as an expense. Then you're done with it. If that fridge breaks in 3 years and has to be replaced, you just buy a new on and expense the new one also.
In most cases for property that has a mortgage on it, all your rental deductions (mortgage interest, property taxes, insurance, depreciation) will exceed the rental income each and every year anyway. So getting nit-picky about depreciating "the small stuff" is a waste of time and effort, as it really makes no difference anyway. How it that works out when renting out a part of one's primary residence instead of the entire property may change that. It just depends on the cost factors and rental income amounts.
