How/where do I deduct $6,800 for new windows in rental apartment?

[bernieA]

If this is not deducted in given year as expense but depreciated, how does it figure in to existing depreciation taken annually?

[PaulaM]

I'm not sure I understand you question completely. If you a renting the apartment to someone else, the addition of windows would be listed as an improvement and depreciated as a separate asset.

Let me know if that helps.

[bernieA]

Yes renting to someone else. OK, an improvement and depreciated. No way to take it as an expense I assume?  Thank you.

[PaulaM]

Unfortunately, no. The De Minimus Safe Harbor exclusion (where you can expense items normally depreciated) is limited to $2,500.

[bernieA]

Much appreciated.

[PaulaM]

You are welcome. 🙂 I will summarize in answer below.

[PaulaM · Accepted solution]

The addition of windows to a rental property would be categorized as an improvement and be depreciated over the useful life of the rental unit.

See page 5 of IRS pub 527

https://www.irs.gov/pub/irs-pdf/p527.pdf

[thstle1]

What is you add windows to rental and sell rental within the same year?  How do you add asset to depreciate and end of life within same year?

[DaveF1006]

Those windows can depreciate even over a period of months as long as you add a date you put those windows in service(typically when they are fully installed and paid for) and the date you sold the property.