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Updated almost 13 years ago,
How much to capitalize
Just finishing up a rehab for a new rental and I have a question about capitalizing installation charges for appliances. I had to have new wiring run for an electric range and an over the range microwave and needed a plumbing connection for a dishwasher. Do I capitalize these as installation charges with the appliances for 5 years or as a part of the overall rehab for 27.5 years? I am thinking it will be 27.5 since the end product from the new wiring and plumbing will still be there if the appliances are removed, but I wanted to get some input from others.