1245 or 1250 property

[NotEasy]

Is a residential rental property considered a 1245 or a 1250 property?

Thank you.

[solomon]

Presently it is 1250.

[Jiggers]

Rental property

What about the refrigerator, oven, etc. that may be currently depreciated over 5 years MACRS?

Wouldn't that be 1245 property?

And how do you allocate the sale price?

[abby]

items bought after original purchase

Here's what I do.

Unless the items are detailed (cost segragation) in the original purchase, the entire building, even if there are hundreds of personal property items, are set up as part of the building.

If items - appliances, carpeting, etc, are purchased afterwards they are set up and depreciated as personal property.

When the property is sold, again, unless the personal property is detailed in the contract, I allocate enough of the purchase price to sell those items at zero gain and use the remaining purchase price to calculate the gain on the building and land.

I've never had a circumstance where there was so much value involved that it was worth chasing down the FMV, and the few circumstances I've had where there were literally hundreds of items, they were, in fact split out in the original purchase or sale.