Depreciation of Personal Property Purchased Before Placed in Service

[Margaret Feit]

I have a new construction STR that will be completed and placed in service this year. I understand that none of my expenses are deductible until the property is placed in service, and that all construction expenses and holding costs get added to my basis to begin depreciating over 27.5 years once the property is placed in service.

My question is about the personal property items that I purchase for the house in the month or so before placing it in service. Since this is an STR, there is a lot of personal property - appliances, furniture, decor, linens, etc. These would all normally be depreciated over 5 years (or just expensed, in the case of the smaller items like linens). If they are purchased before the property is placed in service (but in the same year), I understand their depreciation can't begin until the placed in service date. But beginning on that date, can I depreciate these items separately over 5 years, or do I have to wrap them into the property basis that depreciates over 27.5 years? For the personal property items that are under $2500 (which is most of them), can I expense them as de minimus expenses on the date they are placed in service, even if I actually bought them a few weeks prior?