If I buy new windows for a rental property, what category for depreciation does that fall under?

[PeterM]

You may qualify to expense these windows entirely instead of depreciating them as "Improvements" which are depreciated over a 27.5 useful life. The election to expense them currently is called the Safe Harbor Election for Small Taxpayers.

This election is an option you can take each year that lets you write off some building improvements as expenses instead of assets. Expenses typically reduce your income by a larger amount than depreciating an asset over multiple years does. This means you could get a bigger refund.

Here are the rules you need to meet to take this election:
 - Your gross receipts, including all your other income, are $10,000,000 or less.
 - Your eligible building has an unadjusted basis of $1,000,000 or less.
 - The cost of all repairs, maintenance and improvements is less than or equal to the smallest of these limits:

• 2% of the unadjusted basis of your building or
• $10,000
  

 If you decide to take this option, a form called Safe Harbor Election for Small Taxpayers will show up in your tax return. This election will apply to all your businesses, rental properties or farms. If you qualify for this election, then you'll enter the windows as "Other Expenses" on your Schedule E.

[carlsone]

If I had three separate projects for the year, one at $7200, $3390, and $1000, would I still be eligible, or is it $10.000 for all improvements?

[dwill23]

$10k for all improvements

[apc272]

With a basis of $350,000 is my expensing of improvements limited to $7,000?

[ColeenD3]

@apc272

Are you referring to the Improvement Election? If your basis in your property is $350,000, yes, 2% would be $7,000.

Improvements Election

This election is an option you can take each year that lets you write off some building improvements as expenses instead of assets. 

Here are the rules you need to meet to take this election:

• Your gross receipts, including all your other income, are $10,000,000 or less.
• Your eligible building has an unadjusted basis of $1,000,000 or less.
• The cost of all repairs, maintenance and improvements is less than or equal to the smallest of these limits: 
  • 2% of the unadjusted basis of your building or
  • $10,000

This election for building improvements is called the Safe Harbor Election for Small Taxpayers. If you decide to take this option, a form called Safe Harbor Election for Small Taxpayers will show up in your tax return. This election will apply to all your businesses, rental properties or farms

[Carl]

@apc272 and @ColeenD3 please take note of the posting date/time of the first three message in this thread. They are exactly the same down to the minute. That indicates this thread was imported from the old forum and was originally posted in a prior tax year. Laws have changed since. So the information provided in this thread is not "quite" accurate for a 2019 return.

As I interpret things, new windows in a rental property do not qualify for the safe harbor de-minimus deduction as an expense, regardless of their cost. This is becuase they do "in fact" become "a physicall part of" the structure. I saw a "fairly" good write up on this stuff on a third party website at http://qbpros.net/2019/05/depreciate-expense-irs-safe-harbor-rules/ Most of it is still in "tax-speak" but is more understandable and comprehendable than reading it in the IRS Statutes directly.

[jimhuggins]

I am now working on my  2020 tax return.  The original question in this thread was never answered.  What depreciation category do new windows for a rental fall under?  The choices are 1. Residential Real Estate, 2. Appliances, carpet, furniture and 3. Land Improvements.

[Critter-3]

1. Residential Real Estate