X-posted in Tax forum: Startup expense deductions for STRs...

[Connor Heim]

Hi folks,

in 2018 I purchased and placed 3 short-term rentals into service -- my first year doing STR.

I have filed an extension on my taxes, but want to get them done sooner rather than later. While I have kept good records and receipts, I am having a difficult time figuring out what items I'm able to immediately write off as "supplies" and which need to be depreciated.

Where I'm running into difficulty is things like second-hand furniture... Typically furniture would be an asset depreciated over a number of years... but when you buy a dining room table from Goodwill for $35, is that something that could immediately be written off, or would it still be depreciated due to its category of being furniture. Also, STR furniture may have a shorter life-span than stuff in a longer term rental.

And then there are the zillions of things such as wine glasses, soap dispensers, accent rugs, pictures on walls, shower curtains, napkin holders, coffee makers, hangers, decorative items, and on and on and on..... and on. I am a very thrifty and frugal shopper, so the vast majority of these items have come from Goodwill, Craigslist, etc...

I do plan on using a CPA to file my taxes (first time.... always have done my own in the past but 2018 was first year owning rental properties), but I like to have my ducks in a row, so to speak, by being well organized BEFORE engaging the CPA.'

Anyone able to share insights?

Thanks so much!

Connor :)

[Julie McCoy]

@Nancy Bachety I've been using spreadsheets but I really want to move into a software - I've experimented with a bunch but so far haven't found The One.  I think I need to educate myself on QuickBooks more, honestly - the reason I haven't been using it is because there's too much of it I don't understand, but I know it'll be best for my accountant.  My local library offers free access to Lynda.com courses so I think I'll do some training on QuickBooks.  (I haaaaate bookkeeping, the sooner I can justify a bookkeeper the better myself and my CPA will be... LOL)