Please see your questions with answers following below.
So I'm not sure whether to go with the tax assessment value as the FMV or what's on Zillow.
- Tax assessment is always best to use
Adjusted basis would be 71,387 + 18,622 + 182,750 = $272,759 . This is figure to use for depreciation?
- Close. This is the correct basis for depreciation: $227,755
- (half of the actual costs + 50% FMV on the date of death) or $45,005 + $182,750.
Also I wanted to confirm that I can just expense some items that cost less than $2500 using the safe harbor (I think) method. Example: $450 microwave, ceiling fans $1500, toilets $250/each. Can I just list them as repairs so I don't have to depreciate?
- Yes. They should be listed under Miscellaneous or Other Expenses on Schedule E when using the DeMinimis Safe Harbor (cost less than $2,500).
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