Fully furnished rental

[oceanlovin'ea]

Client is partnership that purchased a condo that will be used for rental property. It is a brand new condo and they completely furnished it. How do I have them break down the furnishings in the condo?

Can we lump kitchen dishes and small appliances together? Linens together? What about lamps, tables, pictures, etc?

Thanks for your suggestions.

Linda F

[Brian EA]

Client is partnership that purchased a condo that will be used for rental property. It is a brand new condo and they completely furnished it. How do I have them break down the furnishings in the condo?

Can we lump kitchen dishes and small appliances together? Linens together? What about lamps, tables, pictures, etc?

Thanks for your suggestions.

Linda F

I dont think you have to break it dowm. eg if you are renting your apt, you do not separate the refridgerator from the house. They go together.

[jainen]

the normal pattern.

Did they finance the purchase? What did they tell the mortgage company about the value of the property? If they didn't allocate anything to the furnishings, then their basis is zero. That is the normal pattern.

[oceanlovin'ea]

Bot furnishings separately

They bought a condo, I think maybe in a new building. Then they spent over $10,000 on furniture and furnishings in the condo at Rooms to Go, Lowes, KMart, etc.

The mortgage is for the condo only.

Linda F

[Black Bart]

Condo Furnishings

Linda/ There's no point in breaking all that junk down like that--IRS isn't interested in those details. Just list it as $10,000 worth of "Furniture & Fixtures" and depreciate it under "5-Year Residential Furnishings." It'll go through like that just fine with no complaints from IRS or anybody else.