rental appliance replace - expense or depreciate?

[Anonymous]

Hi, I rented out my house last year and the fridge broke down and I bought a new one for around $1200. Can I expense the whole amount or do I need to depreciate it for 5 years? Thank you!

[TeresaM]

It depends, you should have several options, depending on the category of the purchase. 

You will want to enter it as an asset, so check the box for Improvements, furnishings, and other assets



and then add an asset


Check Rental Real Estate Property to describe asset

 

Check appliance box

After you answer questions, it will offer you choices for how to handle the expense of the refrigerator.

 

[Anonymous_]

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@Anonymous wrote:

...the fridge broke down and I bought a new one for around $1200. Can I expense the whole amount or do I need to depreciate it for 5 years? 

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You can expense the entire amount by using the de minimis safe harbor election. Check the "Yes" box in the screen in the screenshot below and then deduct the $1,200 as a miscellaneous expense (Other expenses).

See https://www.irs.gov/businesses/small-businesses-self-employed/tangible-property-final-regulations#Ademinimis