Is Section 179 deduction allowed for typical Kitchen and bathroom Improvements?

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Message Board Is Section 179 deduction allowed for typical Kitchen and bathroom Improvements?

This topic contains 3 replies, has 2 voices, and was last updated by William Dewberry 1 week, 2 days ago.

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  • #147898
    Anonymous

    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.

  • #147946
    William Dewberry
    Participant

    If you believe it is personal property, 179 is available

  • #147997
    Anonymous

    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.

  • #148011
    William Dewberry
    Participant

    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.