Cost Segregation data 2022 Q: bulk or list each item individual?

[JD Martin]

Good evening tax pros! 

I am running my sample 2022 tax return in order to figure out how much federal I'll owe for the year. I bought a property this year that was a good candidate for a cost segregation study, and I had it done. It will be saving me a pretty significant chunk of taxes this year so it was definitely worth doing. However, I have a question on inputting this data into my return.

I have a big list of items that qualified and corresponding 5 or 15 year depreciation amounts - example: irrigation $5254.06 (15yr); swimming pool $39,563 (15yr); Refrigerator $1812.82 (5 yr). ETC. 

Do I have to fill out a separate Federal 4562 for each item and check it off as bonus depreciation, or can I bulk the items together - either all of them total, or the 15s together and the 5s together? I obviously don't want to do anything that will make the IRS more likely to pick me out for an audit, but if it's not necessary to fill out a separate 4562 for the $500 microwave/range hood or the $400 garbage disposal, that would be spectacular. 

Thanks!

[Natalie Kolodij]

The most correct way would be to break it out. 

Reason being if you replace any of those assets you'll want to remove the old asset from the schedule. 

So if you have a set of kitchen appliances fully written off and you then replace them 5 years later...you'll want to be able to remove those old appliances from the asset schedule as they're gone now. 

This often doesn't happen this way- but it should.