Rental Prop. / Capitalize Furn. & Fix?

[bbrownatl]

I've got a client who desires to expense quite a few Furniture & Fixtures that they bought this year for a rental condo they own. Most of the stuff ranges from $500 to $2,000 each. I've communicated that it all needs to be capitalized as F&F and depreciated. Just wondering what other practioners use for a "de minimis" level so as to expense certain items? Any insight appreciated.

[Gretel]

I've got a client who desires to expense quite a few Furniture & Fixtures that they bought this year for a rental condo they own. Most of the stuff ranges from $500 to $2,000 each. I've communicated that it all needs to be capitalized as F&F and depreciated. Just wondering what other practioners use for a "de minimis" level so as to expense certain items? Any insight appreciated.

100% bonus depreciation for 2011.

[Burke]

Except for the state. GA makes you add-back to regular method.

[oceanlovin'ea]

Can you do bonus depreciation on rental property? I thought we had to use depreciation methods for anything to do with a rental.

See page 7-1 of TTB. Most of it would be 5 year property.

Linda, EA

[Burke]

You can do bonus depr. Gets around the 179 problem if you don't care about the state add-backs. See TTB 9-16. It is allowed for residential rental property.

[Gretel]

In a year when we had 50% bonus a client of mine did cost segregation on several of his multi-unit rentals he build in one year. This produced a huge loss. He got around half a million dollars back from NOL carry-backs between the IRS and the State.