Replacing kitchen cabinets and bathroom vanities

Forum|Forum|4 years ago
March 8, 2022
5 replies
44 views

I made a 50% down payment in 2021 for kitchen cabinets and bathroom vanities for a rental property. The cabinets were delivered and installed in 2022. The remaining cost of these items was paid in 2022.

Can I amortize or expense the 2021 down payment? I can allocate the amount of the down payment to the kitchen cabinets. The remaining amount to be paid (in 2022) would be allocated to the bathroom vanities and handles similarly on the 2022 taxes.

Thanks.

taxlady28

Level 10

You can do that or take a safe harbor. Depends on the amount of money and how you want to do it.

okrandyAuthor

Level 5

Thanks DanP0428.

The total is around $5,700. By safe harbor are you referring to the QBI approach?

Also have around $1,500 in electrical/plumbing/lighting repair and replacement.

LeonardS

Level 14

Yes, you can use the safe harbor for replacing the kitchen cabinets and bathroom vanities. Each item can not exceed $2,500 in order to qualify for the safe harbor. This would include materials and labor.

@okrandy

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