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Level 3
posted Mar 21, 2024 11:53:46 PM

when should an item be entered on the depreciable assets page?

I run an airbnb. How should I categorize small ticket items such as a $100 Keurig machine or a $50 knife block? Is there a dollar amount when an item should start being depreciated as a depreciable asset on the assets page?

0 3 1233
3 Replies
Expert Alumni
Mar 23, 2024 7:39:18 AM

There is not a particular dollar amount where it becomes more necessary to claim depreciation on an item.  Instead, you need to consider the useful life of the item in question.  

 

Things such as a knife block and Keurig machine may have a useful life of under a year.  If that is the case, include the cost of these items as an expense instead of a depreciable asset.  You can enter the cost as a 'supply' expense.

 

Here is how TurboTax defines a rental supply expense:

 

Supply expenses are items you used for your rental property that cost $200 or less or last less than a year. 

 

Also, take a look at the following TurboTax help article to learn more:

 

What is depreciation?
 

Level 3
Mar 25, 2024 12:05:33 PM

I have a lot of items that are $200 or less, such as blow, dryers, and irons, and other things that have a useful life of under one year. Should I classify them as “supplies” along with my regular supplies, such as toilet papers and cleaning supplies or is it better to put them under misc expenses? 

Expert Alumni
Mar 25, 2024 12:16:45 PM

Yes, I would classify them as supplies. If you would like to separate the different kinds of supplies, you can.