Depreciating individual appliances vs adding to cost basis


"If you install a new refrigerator in a rental property, you could choose to depreciate it over five years instead of considering it an improvement and adding it to your cost basis.
In many cases, this isn’t worth it. Depreciating individual assets can get complicated fast and greatly increases tax preparation expenses. For example, if you renovate all three kitchens in a triplex, it's easier to add the cost of the renovations to your cost basis as opposed to depreciating each appliance according to their individual life spans"

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  • 5 months ago by vince