Bonus depreciation can only be used for assets that have a depreciation life of 20 years or less. Your rental property is going to be mostly or entirely a 27.5 year asset (or 39 years if it's a sho...
See more...
Bonus depreciation can only be used for assets that have a depreciation life of 20 years or less. Your rental property is going to be mostly or entirely a 27.5 year asset (or 39 years if it's a short-term rental), so unfortunately it doesn't qualify for bonus depreciation. You may have some assets that do qualify for bonus depreciation, such as appliances and furniture which are both 5 year depreciation class items, and those would qualify for bonus depreciation. If you enter those items as separate assets in TurboTax with the correct category, TurboTax will let you take that bonus depreciation. It's worth mentioning that your rental property that you are depreciating over 27.5 or 39 years may have some components that could be depreciated faster, such as some types of flooring, some types of fixtures, certain cabinets, a driveway, etc, that could instead be depreciated over 5-15 years (and so those components would qualify for bonus depreciation). The best way to determine the entire scope of assets that are part of your building that you could depreciate faster is to have a cost segregation study done on the property using a company that provides that service.