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Updated about 12 years ago on .
Most recent reply
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rental property improvement: depreciation over how many years?
Hey guys!
Imagine a scenario: a 4-plex was purchased in 2011 and the owner leased out 3 units and lived in one of the units himself. Before moving in, he did some improvements since the unit was in dilapidating condition.
-new tile, bathtub, sink, window, etc
-new kitchen cabinets, paint
-refinished hardwood floors
-new blinds, paint, etc
The owner moved out in October 2012 and placed the property for rent in November 2012.
Question:
1. Are all the improvements done to the unit depreciated over 27.5 years or 5 years (since it's a PERSONAL PROPERTY)
2. Would 50% bonus depreciation rule (for improvements) work here?
Thanks!
Edita