Do you need to depreciate new ceilings fans or blinds on rental properties?

[joannabanana6]

When a tenant moved out of one of our rentals, we spent some money on painting the interior, replacing the ceiling fans and the blinds and installed new flooring and appliances.

I know that the flooring and appliances get depreciated, but do things like the new ceiling fans and blinds also have to be included?

Also, I'm assuming the painting can qualify as an expense?

Thanks!  🙂

[KrisD]

Normally you would depreciate anything that is expected to last more than 1 year.

There are options to take a 179 deduction where you can "depreciate" the entire cost in the year you purchase items that are under a certain cost. The program will make you aware of that.

Yes, painting is an expense. You can deduct the cost of the paint, but nothing for your own labor, only labor you contract.

CLICK HERE for IRS depreciation information  

CLICK HERE for IRS rental income and expenses

[RTP]

What is most frustrating is the answer you and many others give to specific questions. Regarding depreciating different specific items like in this example (I also have these and others, TV's bicycles, etc), and let's assume I'm not looking to do a 179 deduction, what class of depreciation do ceiling fans and custom window blinds fall into; the classes are 3, 5, 7, 10 15 , 27.5 for vacation property. Why doesn't the IRS or Tax advocates put online a list of specific items and their depreciation category.  I would assume 5 years, but that's a complete guess on my part.

[JohnB5677]

Items you can depreciate and what depreciation category they belong in. Any item you buy that costs more than $2,500 and use for your business must fit into one of the following categories: 

  * Office Equipment – 5 year property  Computer: printer, copier, fax, desk, filing cabinets, scanner, printer stand, computer tables, and desk chair

    * Other Personal Property – 7 year property:  Appliances (washer, dryer, freezer, refrigerator, microwave, dishwasher, etc.), furniture (tables, chairs, sofa, lawn furniture, rocking chair, etc.), bookcase, dehumidifier, entertainment center, hand/power tools, ladder, lamps, lawn furniture, outdoor play equipment, picnic table, rocking chair, rug/carpet/vinyl flooring, television, swing set, window air conditioner, etc.

Land Improvement (Items attached to the land and increase its value) – 15 year property.  Cement slab, cement stairs and railing, driveway, fence, under-ground lawn sprinkler system, patio, new sewer line, sidewalk/walkway, swimming pool, etc.

Home Improvement (Items attached to your home and increase its value) – 39 year property:  Attic fan, awnings, central air conditioning, deck, furnace, garage, new plumbing or electrical work, new room addition, porch, replacement windows, tile/wood flooring, remodeling, etc.

Home (Includes a trailer) – 39 year property

Vehicle (Includes a car, truck or van) – 5 year property

[RTP]

According to IRS Publication 527 Residential Rental Property (Including Rental of Vacation Homes) their very short list of certain  items DIFFERS from your list in your response. For example:

Appliances (washer, dryer, freezer, refrigerator, microwave, dishwasher, etc.) are 5 year not 7 year property under the General Depreciation System.  Also this includes furniture  and most everything else you list in that category. 

In the 7 year property category, they list Office Furniture and equipment such as; Desk & Files + "Any property that doesn't have a class life and that hasn't been designated by law as being in any other class."

In the 15 year class, everything that you list does align with this Pub. 527 pg. 9.

And for the building 39 year property I believe is for commercial buildings. Residential rental property  (Including Vacation Rental Property which are included in this category) and any improvements made to that property e.g. roof, windows, furnaces, is 27.5 years NOT 39 years.

Your response is the reason that the depreciation is not very well spelled out (in the detail that would prevent people from making errors) in the IRS publications specifically Pub. 527