Client made substantial typical Kitchen and bathroom improvements of his residential rental property during 2018 to the tune of $23,000. Can he take Sec. 179 deduction on the improvements with 7 to 10 life.
Also, a new stove costing $2,150 was bought and placed in service in the same residential rental property in 2018. Can he also take Sec 179 deduction on the stove. The net rental is profitable. – after building depreciation. From what I can find, Section 179 or bonus depreciation is not allowed for residential rental property.
The stove could be expensed if the requirements for the De Minimis Safe Harbor election are met, no depreciation or Sec 179 required. Remodeling of cabinets, fixtures, wall and floor surfaces, electrical/plumbing (substantial improvement) would not be considered personal property.
I disagree with the previous comment,KBKG cost seg studies very often list these amounts as 5, 7 yr property and thus personal property. Im not saying they qualify, thats your call, but it is not cut & dried.