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Quick question if I may slip this in here at the last moment of (not-extended) tax season
I find and keep seeing conflicting information regarding what methods I can take, including bonus (not 179) on a $5000 fence and a $5000 HVAC on a Single Family Residence.
Anybody point to any IRS/CA literature, please?
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179 not allowed for residential rentals.
IRS publication 946
4562 instructions
Your state might not conform to the IRS federal and bonus depreciation rules so you'll need to check those instructions too.
The rules aren't easy to understand. I hear ya!
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Land improvements (such as fences) are 15 year property and qualify for Bonus.
HVAC is considered part of the real estate, so it is 27.5 years and does not qualify for Bonus.
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What is the de minimis safe harbor deduction amount?
Taxpayers with an applicable financial statement (e.g., audited financial statement) who file an annual election statement may deduct $5,000 per qualifying item under the de minimis safe harbor. For taxpayers without an AFS, the per qualifying item limit is $2,500.
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Likely someone with a SFR would not be doing a certified financial statement, but guess it IS possible.
