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Updated almost 5 years ago on . Most recent reply
Bonus Depreciation on Rental Properties
Hi, for those here who own rental properties 1-4 unit residential, Are we able to use bonus depreciation when filing taxes on these assets? I was told that you are only able to depreciate These assets with their normal 27.5 year depreciation schedule.
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- Tax Strategist| National Tax Educator| Accepting New Clients
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You need a new accountant.
Any thing with a life of under 20 years qualifies for bonus depreciation.
A cost segregation separates as much as possible into 5 or 7 year assets which would definitely qualify.
Even if you do renovations though it's important to note that a lot of things CAN'T be separate out on a rental without a cost segregation.
If you do a $15k bathroom renovation just because you know the cost doesn't mean it can default to not needing to be capitalized.
