Schedule E supplies or depreciation?

Question

I'm curious as to what is considered "supplies" or "cleaning and maintenance" and also if I need to depreciate.

Each year I purchase a lot of mulch and annual flowers for my rental.  I do all the work myself.  Would I put the price of this under supplies?  Or since it's not necessary to live, but just something pretty, can I still deduct it?

Annuals die each year, but what if they are perennials, would those need to be depreciated over 15 years?

2 years ago I figured the number for the depreciation on my house,  I subtracted the land value and divided the number by 27.5.   I understand I will be using the same number each year.

What if I add things to my house that need to be depreciated after I made that initial calculation? for instance I built a fence and some pergolas last summer and I understand that is something that is depreciated over 15 years.  Do I just do the math myself and keep those records for myself where I divide the total cost by 15, and then add this number to my other number for the house depreciation and simply put that number on my schedule E?    Or do I need to send in a separate form further explaining where the numbers come from.

Thanks

Dave Toelkes · Answer

If the flowers and mulch have an expected life of just one year, expense as either supplies or mintenance.

You may want to review your first year depreciation.  The first year depreciation follows a mid-month rule that pro-rates the depreciation to the date you placed the property in service.  IRS Pub on Depreciation gives you extensive guidance on how to use the depreciation schedules to determine the exact percentage depreciation for the first year your property is in service.  Same for the last year your property is in service or the last year of the depreciation schedule.

Additional depreciable items you add while the property is in service as a rental are added to your depreciation schedule and tracked separately from the main building depreciation schedule, although your Schedule E just reports the aggregate total depreciation allable for the year.  Part year rules apply tofirst year of service for the depreciation allowed for each addeitional depreciable asset.

Christopher Smith · Answer

Just me, but I would write off the mulch and flowers as basic landscaping costs. If you don't feel comfortable with that can't you expense all this stuff under one of the annual safe harbor expensing rules?