I know none of us are giving out legal tax advice.
I am just curious if purchasing used appliances in good condition would qualify for depreciation or is that limited to only new appliances?
My CPA writes them off in the year purchased as they may die at any time. New appliances get depreciated.
Furnishedowner
used houses are depreciated; why not appliances?
yes, they qualify.
but I like furnishedowner’s approach.
I believe there is a threshold for how much you can expense vs. depreciate. Things that cost less than the threshold can be expensed. Things that cost more should be depreciated. I believe most appliances would be below the threshold. Am I right?
That’s terrific feedback. I never thought of it that way. Thanks. I will certainly be sure to ask my CPA when the time comes. Especially if I purchase lower-end rental units where “newer” used appliances may be needed to replace even older appliances.
I believe there is a threshold for how much you can expense vs. depreciate. Things that cost less than the threshold can be expensed. Things that cost more should be depreciated. I believe most appliances would be below the threshold. Am I right?
there is no such threshold in the tax code. however, most people have “created” a threshold, just to eliminate the extra hassle of depreciating everything.
IRS doesn’t care (for most people) since most depreciable personal property can be expensed in the first year (section 179) anyway.
mcwagner,
In looking at Section 179, it appears under the topic - “What property does not quality”, it lists the following - "Generally, you cannot claim a section 179 deduction for property used predominantly to furnish lodging or in connection with the furnishing of lodging. "
It states an exception if you are a motel or hotel housing transients. But, it seems like the 179 deduction does not apply to RE investors.
mcwagner - thank you for clarifying. Somehow I got the idea that there was one… :O(