Investor · San Diego, CA · Member since 2012 · 309 posts · 18 votes
Hey guys!
Imagine a scenario: a 4-plex was purchased in 2011 and the owner leased out 3 units and lived in one of the units himself. Before moving in, he did some improvements since the unit was in dilapidating condition.
-new tile, bathtub, sink, window, etc
-new kitchen cabinets, paint
-refinished hardwood floors
-new blinds, paint, etc
The owner moved out in October 2012 and placed the property for rent in November 2012.
Question:
1. Are all the improvements done to the unit depreciated over 27.5 years or 5 years (since it's a PERSONAL PROPERTY)
2. Would 50% bonus depreciation rule (for improvements) work here?
Accountant, Enrolled Agent · Grayslake, IL · Member since 2011 · 5k+ posts · 2k+ votes
13y
Edita the new bathtub will depend based upon if it is a built in or not if it is built in then it will be depreciated over 27 and a half years just think what new kitchen cabinets are depreciated over 5 years the countertop would be 5 years.
Feel free to contact ne as I would like to explain the depreciation on the building and how it should appear on your return. For the first year it will be calculated based upon the 3/4 rental through that date.