What items can be depreciated? What items cannot be depreciated on a rental home?

[jamesrath1970]

Some of the items that were improved include new appliances, a new pantry which I constructed, new carpet, new laminate, new paint, finished garage, and new door knobs.

[AshleyRose1 · Accepted solution]

Please select the following link which will bring you to the IRS publication 527 regarding items that can and cannot be depreciated on a rental home: https://www.irs.gov/publications/p527/ch02.html

[TaxGuyBill]

Items $200 or less can be deducted in one year unless they are part of a larger 'project' (such as a remodeling project).  If they are part of a 'project', then the entire cost of the 'improvement' is depreciated.

"Assets" over $200 are depreciated (you may qualify for a special election to increase that amount) if the item or asset has a useful life over 1 year.

Appliances, carpet, etc. will usually be depreciated (depreciate each separately), usually over 5 years for a rental property.

Improvements to the home, such as finishing the garage, are usually depreciated over 27.5 years.

Just enter these "assets" into TurboTax and it should walk you through the process.

[jamesrath1970]

Is the flooring depreciated as a separate line item, rather than a project? Is painting depreciated or part of the project?

[TaxGuyBill]

Laminate flooring could be a bit of a gray area, but I would include that and the paint as part of a 'project' and depreciate the project over 27.5 years.