Depreciate Household Appliances without Receipt

6 Replies

Hi BP community, I recently bought my first property, which is a condominium (and will be used as a rental property). Seller has replaced old carpeting with new, new vinyl, all interiors with fresh coat of paint as well as the installation of new appliances (dishwasher, refrigerator, stove and range hood). My challenge is that I haven’t received any receipts for these newly acquired appliances. How would I go ahead and deduct/depreciate these personal properties during tax season without having any adequate proof of purchase? Much appreciated and thanks to all!

@Douglas Dueno

The cost of those appliances is included in your purchase price. I am assuming you didn't buy that appliance. You bought the house, so you depreciate the house, not the appliance purchased by the seller.

However, you could do the Cost Segregation and accelerated depreciation even 100% depreciation this year, but the cost of Cost seg for one condo is not worth the tax saving. 

It's not that you will not get that deduction if you do not do cost seg. You will eventually depreciate them, but not as fast as you would have.  

@Douglas Dueno

You can write off the cost of these appliances this year. Look up their prices online, since they are brand new. 

This is enough justification to separate them from the price of the property, without a cost segregation study.

By the way, tomorrow there's a great REI networking event in Houston hosted by Jet Lending and Renters Warehouse.

@Douglas Dueno

Was updating the house a condition of purchasing the house?
or did you pay him after you acquired the house to update the house?

If it is the first option above - the cost of all the updates are baked into the purchase price and depreciated over the useful life.

@Douglas Dueno

No, it is not "baked into." You can allocate part of the purchase price to appliances and deduct them. 

Thanks very much for everyone’s helpful and constructive input, which I’ve indeed appreciated!

Since the appliances were included in the purchase price, I will go ahead and depreciate the house value.

Thanks again BP

@Douglas Dueno

You apparently missed what I was trying to tell you. 

Yes, appliances were included in the total price, but you can split them out and deduct. 

Say you buy a living room set from Mattress Mac. You have one $5,000 charge from Gallery Furniture - but $150 of that is delivery fee.

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