Depreciation on rental property appliances (fridge, stove)

[jcohen259]

Turbotax is calculating 7 years depreciation but I thought the irs publications indicates 4 years for appliances. 

[CherylW · Accepted solution]

Dear jcohen259,

This is from IRS Publication 527:

5-year property. This class includes computers and peripheral equipment, office machinery (typewriters, calculators, copiers, etc.), automobiles, and light trucks.

This class also includes appliances, carpeting, furniture, etc., used in a residential rental real estate activity.

In Turbo Tax to get the correct life, Update the Assets section of the Rental property.  Edit the fridge and stove (you're going to have to do this for each of the assets).  On the Describe this Asset page, choose Rental Real Estate Property.  On the next page, Tell us a little more about your rental asset, choose Appliances, Carpet, Furniture.  

Enter the description, cost, and date purchased or acquired, and fill out the next screens appropriately.

When you reach the screen that says Asset Summary, click the Show Details box, and you should have the cost and it should be correctly reported as a 5 year property.

If you have any further questions, please post to this thread.

CherylW

[jetsam0722]

I had the same problem, these instructions corrected it.  Land improvements and real estate property is not the same as a rental property appliance, so there would be no reason to select that without these supplemental instructions.  

The prompts are very misleading.  Following the prompts for "rental property appliances, carpet, furnishings" (listed as an example under the "Tools, Machinery, Equipment, Furniture"  selection) resulted in a 7 year (vs 5 year) depreciation for my rental property appliance.  

TurboTax should fix the prompts.

[mindfulness23]

Agree,  because the prompts are STILL misleading, I missed appliances and now have to refile IRS, State and county. Very disheartening.

[tara917041]

do you depreciate all appliances as straight line? what is the difference in that and macrs 200% declining balance?