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Level 1
posted Mar 23, 2020 9:43:54 AM

Item purchased before rental property was put into service but installed after.

I purchased a new garbage disposal for my rental property before I put my it into rental service. I didn't have it installed by a plumber until after the property was placed on the market. How do I depreciate it?

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1 Best answer
Expert Alumni
Mar 23, 2020 10:02:40 AM

Start depreciation from the time it was installed.

 

Please see this answer from Hal_Al:

 

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

1 Replies
Expert Alumni
Mar 23, 2020 10:02:40 AM

Start depreciation from the time it was installed.

 

Please see this answer from Hal_Al:

 

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