Anothe bonus depretiation questoin

[George Genovezos]

Hi all,

I have a question regarding bonus depreciation. I purchased a 14 unit last year, and one of the units was down. I had to paint, replace floor, add a kitchen countertop and cupboards...

Do all these qualify as bonus depreciation or do I need to put them under standard?

what about the labor?

[Eamonn McElroy]

@Account Closed

"In theory the items you are mentioning are fixtures with a 7 year life..."

No, that's not correct.  : )

There are no 7 year life assets in a residential rental real estate activity.  Office furniture and fixtures are 7 year GDS assets.

Absent an electing real property trade or business election under 163(j), and ignoring the land and amortizable intangibles, I'd expect to see 5yr, 15yr, and 27.5/39yr GDS assets only on a residential rental's depreciation schedule.

Agree that it's difficult to navigate the tangible property regs and depreciation class lives without a CPA.