How should I deduct a garage door opener for a rental property?

Forum|Forum|7 years ago
June 4, 2019
2 replies
47 views

Hi
I put a new garage door opener in my rental (never had any) and paid around $450.
Turbo tax asks me about the "election" between expense in the year or appreciation, but if I read the explanation for "process" it says item has to have useful life of 12months or less.
I am guessing that option is out then?
And if yes, how many years should I use for the depreciation?

thanks!

TurboTax Premier Online

Best answer by

Because of new de minimis safe harbor rules assets (used for more than a year to earn money in profit making activity) costing less than $2500, can be expensed instead of depreciated.

If you choose to depreciate the garage door opener, select Appliances, carpet, Furniture category and the software will use the 5 year class life.

Anonymous

Answer

Because of new de minimis safe harbor rules assets (used for more than a year to earn money in profit making activity) costing less than $2500, can be expensed instead of depreciated.

If you choose to depreciate the garage door opener, select Appliances, carpet, Furniture category and the software will use the 5 year class life.

PantelisAuthor

Level 2

Thank you for the answer! really helpful!
Reading more about the de minimis safe harbor rules on the irs site and on turbo tax yesterday, I realized there is a 2% of unadjusted basis of the property limit to be able to claim this.

When I started the rental I used 292K as basis which I am deprecating over the 27.5y period, which I think that's the unadjusted basis the rule is calling for. This makes my limit 5840.
I've paid in 2016 for roof cleaning, exterior painting, plumbing repairs, HOA, etc. a lot more than that amount which I'd deduct normally anyway.
But the safe harbor rules I think refers to "all" repairs/maintenances whether I had intention to use them in the safe harbor rule or not. Am I reading this right? I am guessing this makes this ineligible then and the only option is depreciation?
Can someone please confirm since I think ideally the preference is to have them deducted as expenses and I want to make sure I don't miss out on the opportunity?

On a related note, If I was going to replace an broken garage opener instead, would the same rules apply, or would it be ok to just flat out call it a repair?

thanks again for all your help!