Equipment/Tool depreciation

[Michael Walton]

Hi,

I've recently purchased some lawn equipment (leaf blower, lawn mower, weed trimmer) for the sole purpose of maintaining the property around my quad.  How do some of you handle depreciating this type of equipment, as well as any other major tools that you utilize in your rentals?  e.g. what useful life are you using, etc..

I'm pretty familiar with the tax code as it relates to rental income expense, but the depreciation portion only really touches on the property itself (and improvements), but it doesn't mention anything about equipment.

Thanks in advance!

[Brandon Hall]

@Michael Walton you will be looking to use the De Minimis Safe Harbor that allows you to deduct tangible property used in your trade or business under $500 per invoice or per item as substantiated by the invoice. See more here:

https://www.biggerpockets.com/blogs/6032/blog_posts/41669-understanding-the-safe-harbor-rules-and-keeping-money-in-your-pocket

Or as @Ned Carey mentioned, you can use the Section 179 deduction which allows you to expense, in the current year, property you would normally have to depreciate. Section 179 and rental properties can get a bit hairy though, so make sure you really know the tax code or seek out a professional. More reading here:

http://www.irs.gov/publications/p946/ch02.html