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New Member
posted Jun 6, 2019 1:05:37 AM

Is the replacement of the garbage disposal in a rental property considered a repair or an improvement? Does it get depreciated?

0 5 5912
5 Replies
Level 15
Jun 6, 2019 1:05:39 AM

It's an improvement and is depreciated over 27.5 years.

However, there is a relatively new tax break that will allow you to elect to deduct it all this year.

You can still use the  De Minimis Safe Harbor election for improvements Up to $2500.

  Reference:  https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations

New Member
Jun 6, 2019 1:05:40 AM

When I input the garbage disposal on turbotax, it used the 5.0 years Half Year 200DB depreciation method. It didn't use 27.5 years. What am I doing wrong? Also, I didn't see anywhere the De Minimis Safe Harbor election. If one were to opt to elect the De Minimis Safe Harbor, would one just input the cost as a repair? Many thanks.

New Member
Jun 6, 2019 1:05:42 AM

Upon reading other comments on the De Minimis Safe Harbor Election, I ended up entering the replacement of the garbage disposal as a miscellaneous expense.

Level 15
Jun 6, 2019 1:05:43 AM

When asked for asset category, you should choose residential real estate rather than appliances. But, quite frankly, garbage disposals and water heaters are frequently ( and incorrectly) entered as appliances

New Member
Jun 6, 2019 1:05:46 AM

I tried that but then Turbotax ask for a description of the real estate. They give as an example an address. In the cost, they refer to the property. There is no indication that they are referring to a garbage disposal or water heater type asset. All very strange. That being said, it is a moot point as I am exercising the De Minimis Safe Harbor Election. Thank you for getting back to me! I really appreciate it.