Rental house appliance expense percentage

[ImTaxed]

I looked through the similar topics but did not see......

We purchased a new refrigerator for our rental property.

When I entered the cost as an "expense" (not a depreciated asset), the top display Tax Due/Refund only changed by 10% of the $750 I entered.

Why?

I also can't find a chart of which expenses for rentals or business (we have multiples of each) are deductible at any given percentage. is one available somewhere?

Thanks

I also can't find a

[ImTaxed]

I'll add that the expenses did NOT zero the reported income from that rental.

It is showing a 9K income for 2021.

[AnnetteB6]

When you entered the cost of the refrigerator as an expense, it reduced the overall income reported from your rental property.  That in turn, reduced the taxable income reported on your return.  Therefore, you are paying less income tax after entering the expense.

If your refund went up by about 10% of the cost you entered, then your income is either in the 10% tax bracket or it affected any number of other items also included on your return.

Rental expenses do not affect your bottom line dollar for dollar.  They can only reduce your taxable income.

There is not a chart for the percentage that a deduction may be taken for a rental expense.  You are deducting 100% of the cost of the refrigerator.

@ImTaxed

[ImTaxed]

Thanks but that still doesn't seem right.

I owed, and the amount I owed only went down by $75 after I expensed the $750 ref.

I guess I can undo it, check the property income amount, redo it and verify that it's $750 different.

On out other schedule C business, some things we deduct take the full amount off on the top Refund/Owe indicator.

I sure would like to find a table for what percentage of what category is deductible as some of the categories are ambiguous.

[Vanessa A]

I owed, and the amount I owed only went down by $75 after I expensed the $750 ref.

When you expense something, it reduces your taxable income, not your tax due.  Your tax due is a percent of your taxable income, so depending on the income category and other factors in your return, when you entered the $750, you reduced your taxable income by $750 and your tax due by 10% of the expense. 

When you see other things remove larger amounts, it could be adjusting credits.  For example, you could be bringing your income to a point low enough that gives you the earned income credit.  This would change your refund meter by more than just your tax due/versus refund.

To get the best explanation as to what really changes your refund, you should look at  your 1040 lines 15-31.  You can do this by clicking Tax Tools>>Tools>>Preview My 1040