It depends. if your rental property was available for rent before 2021, then the appliances, and other items purchased in 2020, should be used on your 2020 tax return.
Example: While a rental property was being prepared for rent, it is not yet available. Once it became available for rent, whether or not it is rented on that date, and advertised as such this is the date placed in service for a rental activity use.
If the rental unit was available and placed in service on 1/1/2021, then you can use those expenses on your 2021 tax return. It's all about the date they were placed in service for use. Appliances can be expensed under the DeMinimis Safe Harbor (cost of $2,500 or less) as Other Expenses. You also have the option to depreciate them, whichever you decide. As far as expenses that are $20 as in your example, you can enter that under repairs or supplies.
Land must be separated out from the building. The easiest way to figure out the land value is to use the property tax assessment from your local courthouse. Add the land and building together then divide the land by the total to arrive at the percentage that is considered land. Multiply that by the cost basis of the entire property.
Capital improvements can be a separate asset or, if this is the first year, you can include those amounts with your original cost of the rental property and add one asset for the house.
- flooring, windows, roof, remodel are examples of capital improvements
Paint is usually a repair unless it's part of a complete remodel.
@stevenf
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