Depreciate or Deduct freestanding appliance in remodel

[Zhenyang Jin]

Hi all,

I spent 60K to fully remodel one unit last year. Within 60K, there are 6K spent on freestanding appliances (range, refrigedger, dishwasher and combo washer & dryer) .

Question: Whether I can fully deduct 6K appliance as repair expense + 52K remodel improvement? Or I have to depreciate whole 60K improvement?

Following is one sentence from IRS 587: "However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement."

Regards, Clark

[Christopher Tile]

Quote from @JD Martin:

Quote from @Christopher Tile:

Quote from @Zhenyang Jin:

Hi all,

I spent 60K to fully remodel one unit last year. Within 60K, there are 6K spent on freestanding appliances (range, refrigedger, dishwasher and combo washer & dryer) .

Question: Whether I can fully deduct 6K appliance as repair expense + 52K remodel improvement? Or I have to depreciate whole 60K improvement?

Following is one sentence from IRS 587: "However, if you make repairs as part of an extensive remodeling or restoration of your home, the entire job is an improvement."

Regards, Clark

Hey Clark - generally you can expense freestanding appliances as an "appliance" expense if each appliance is under $2.5k a piece. Make sure you keep the invoices for those and ensure you are electing the de minimus safe harbor. 

 This is the route I would go. I always prefer expensing to depreciation. Depreciation is just deferring taxes. 

 If you can expense, you absolutely should. That's why itemized invoices are so important when completing a sizable renovation. Or in a simple scenario of buying all new appliances.