Accelerated Depreciation Spreadsheet / Checklist

[Dave S.]

Does anyone have a good checklist of items that can be included in the accelerated depreciation method? I.e. fans, furniture, etc, etc,. 

What are the depreciation rates for each?

What are the amounts for each that you can use (especially for items such as an oven or the like that came with the house when purchased?)

Are there lower limits for the depreciated items, i.e. there are scrap values to an oven, so $500 to start and can depreciate it down to only $100 and not $0 over the period of time).

As i understand this an engineer or CPA would need to fill this but I wanted to get a jump start on understand what can be done here. 

Thanks in advance

[Yonah Weiss]

@Dave S. to preface, accelerated depreciation separates into three categories according to the Internal Revenue Code:

1. "Personal, or tangible property" depreciates over 5 years
2. "Land improvements" depreciates over 15 years
3. Building, or structural components (everything else) depreciates over 27.5 or 39 years (which may change with the new tax reform to 25 years)

That being said, some examples of 5-year property are: furniture, fixtures & equipment, carpet, decorative light fixtures, electrical costs that serve telephones and data outlets, shelves, decorative molding, etc.

Some examples of 15-year property are: parking lots, fences, signage, etc.

It is important to note, that the IRS highly recommends these property allocations (cost segregation) to be sourced according to the MACRAS Modified Accelerated Cost Recovery System, and the IRS Cost Segregation Audit Techniques Guide, and not estimated. Fail to do so puts one at high risk of failing a potential audit.

If you are doing renovations, or disposing of items within the property, it's worthwhile to have a cost segregation expert, accelerate the depreciation of the old, then can put a scrap value to those item, to write-off, and the new assets can be accelerated again. There are no general values, rather subject to appraised scrap value.