AnnetteB6
Expert Alumni

Investors & landlords

When you entered the cost of the refrigerator as an expense, it reduced the overall income reported from your rental property.  That in turn, reduced the taxable income reported on your return.  Therefore, you are paying less income tax after entering the expense.

 

If your refund went up by about 10% of the cost you entered, then your income is either in the 10% tax bracket or it affected any number of other items also included on your return.

 

Rental expenses do not affect your bottom line dollar for dollar.  They can only reduce your taxable income.

 

There is not a chart for the percentage that a deduction may be taken for a rental expense.  You are deducting 100% of the cost of the refrigerator.

 

@ImTaxed

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