Baltimore, MD · Member since 2018 · 432 posts · 281 votes
It's doing my cashflow wrong on capex. I don't plan on depreciating a CURTAIN ROD, for heaven's sake. Is there a way to tell it it's going under the de minimis rule????
So far that answer is "no", but I work around this by classifying things like this as Repairs and then making a note in the Notes section. This has worked fine so far and I'm hopeful that they will build in this functionality in the near future.
How do you determine what useful lifespan to apply to various CapEx items, @Genny Li?
So far that answer is "no", but I work around this by classifying things like this as Repairs and then making a note in the Notes section. This has worked fine so far and I'm hopeful that they will build in this functionality in the near future.
How do you determine what useful lifespan to apply to various CapEx items, @Genny Li?
I've been self-employed for a loooong time with an at-home office, so this is sort of old hat for me. Lol.
Stuff like curtain rods and curtains, 3 years. Blinds, sofas, etc., five years. Appliances, five years. Flooring: carpet, five years.
Unfortunately, laminate, tile, and linoleum is supposed to be 27.5 years!!!!! So are new cabinets, sinks, bathtubs, etc. Just like the building. So if humanly possible, do it in pieces of less than $2500. Replacement windows? Do them a few at a time.
I use a combo of common sense (for short stuff) and IRS rules (for stuff that's basically part of the house, like those kinds of flooring, roofing, siding, windows, etc.) If I'm doing de minimis, it doesn't really matter if the IRS for some reason thinks the area rugs should last 5 years and not 3 in a furnished rental.
I want to do everything de minimis not even because I can take the deduction now but also because it's just that much less to track, year over year. Fewer complications means fewer errors.
(EDIT: I didn't double-post. The forum update is wonk.)