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pearl12970
Level 2

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

 
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Carl
Level 15

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

For rental property assets, they are normally capitalized and depreciated over time. Appliances would be depreciated over 5 years. However, for qualifying assets that cost less than $5000 you have the choice to either capitalize and depreciate, or to just deduct the full cost as an expense in the year of purchase. Appliances that cost less than $5000 qualify to be expensed.

When working through the rental expenses section, the very, very, very *VERY* last screen of that section is for miscellaneous expenses not covered in other expense categories. Just enter your appliances there and the cost, click Continue and press on.

Overall, depreciating the appliances over 5 years will have minimal affect on your tax liability (if any at all due to every increasing carry forward losses) so I suggest you just expense them. That way, the expense is carried forward and unlike depreciation does not have to be recaptured when you sell the property in the future.

 

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DoninGA
Level 15

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

Appliances are rental assets to be depreciated.  On the Rental Summary screen add the appliances as an asset.

 

Rental Summary - Assets and Depreciation.JPG

 

pearl12970
Level 2

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

I thought you can deduct appliances (assets) under $2,500 if you purchased it for a rental , based on the new 2018 Tax rules? I don't know where and how to deduct it.

 

Under rules that go into effect for tax year 2018, you can also deduct more expenses under a section of the tax law known as Section 179. Under the new rules, you can do this with up to $1 million in new property used for certain allowable business uses, including providing lodging to your tenants. This property can include appliances, such as refrigerators, and furniture, such as beds.

Carl
Level 15

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

For rental property assets, they are normally capitalized and depreciated over time. Appliances would be depreciated over 5 years. However, for qualifying assets that cost less than $5000 you have the choice to either capitalize and depreciate, or to just deduct the full cost as an expense in the year of purchase. Appliances that cost less than $5000 qualify to be expensed.

When working through the rental expenses section, the very, very, very *VERY* last screen of that section is for miscellaneous expenses not covered in other expense categories. Just enter your appliances there and the cost, click Continue and press on.

Overall, depreciating the appliances over 5 years will have minimal affect on your tax liability (if any at all due to every increasing carry forward losses) so I suggest you just expense them. That way, the expense is carried forward and unlike depreciation does not have to be recaptured when you sell the property in the future.

 

View solution in original post

pearl12970
Level 2

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

Thank you Carl.
pearl12970
Level 2

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

Carl,

I had paid delivery charges . Should I include the cost with the appliances or list it separately? 

Hal_Al
Level 15

I purchased a new refrigerator and washer/dryer for my rental property. How do I deduct the expense? I didn't see an option to include new purchases just repairs.

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