Depreciation on equipment rentals

[lovka]

My client rents event/party supplies (tables, chairs, glassware, plates, etc) Stuff doesn't last more than 3 years - how do I depreciate and over what life?

[MichaelG]

I think that should be 5-year property under Asset Class 57.0, Distributive Trades & Services.

[ruthc]

Wht depreciate?

Wouldn't these rental fees be expensed and not depreciated?

[Jiggers]

Wouldn't these rental fees be expensed and not depreciated?

I think the business buys the equipment and rents them out.

You can also Sec 179 the total cost each year.

[ruthc]

You're right!

I misunderstood the qeston. Thanks for clarification.

[lovka]

Yes, the company buys the equipment and rents it out. Not a rent-to-own. Thanks

[Lion]

7

Isn't furniture 7 years? Just shooting from the hip here.

[lovka]

Yes, but since this equipment is rented out and used and abused, it depreciates faster. The Rent-To-Own lobby got the IRS to give them a special 3 yr write off period which applies to my client in principal but my client just rents, not rent to own. My gut tells me that there must be a generally accepted method/life for these type of companies but I haven't found anything definitive yet. Thanks for the comments.