Rental House Remodel

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Example: I spent $50K on remodeling kitchen and bathroom in 2016. I have pulled kitchen appliances like refrigerator out so that I can receive "expensed" value and not straight depreciation. That leaves say, $45,000 to depreciate over 5 years. What is the rule about separating all product from tub to kitchen cabinets, faucets etc. and getting below the $2,500 ceiling in order to get the addition return from "expensing" these products? Can I and should I separate all products to increase 2016 return?

[TaxGuyBill · Accepted solution]

As you say, you can pull out appliances. However, you can not really pull out fixtures.  Those are all depreciated over 27.5 years (40 years if it is not in the US) with the rest of your remodel (not 5 years).