Replacing Dishwasher

Rehabbing, Fix and Flip, Rental Properties
1

I just replaced a dishwasher in my rental property because the other one broke down. I am guessing I will have to depreciate the new dishwasher as it cannot be classified as a repair or maintenance. Is this correct?

Thanks in advance.

2

Correct. Appliances are depreciable assets over 5 years.

http://www.irs.gov/publications/p527/ar02.html#d0e2438

Keith

3

Keith,

Thank you for you response and the IRS link, I knew it was in there but just not where. A continuation of my question: I assume just the cost dishwasher is depreciable, but what about costs associated with installing the new dishwasher, i.e. dishwasher costs $290, but total cost for removing old dishwasher, the new dishwasher, and installation is $340 ($290 + $ 50). What would you classify the additional 50 dollars as? And again I am guessing the IRS will only allow you to depreciate the $290, and not the whole $340. Thanks for you response, and I will also pose his question to my tax consultant once I start my taxes for this year.

Thanks

4

I’d claim it as a repair and let them catch me. The good news is that you probably won’t get too much hard time for $50…

:wink:

Keith