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Tax Law (Questions About Taxes)/Depreciation of Rental Property

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Question
Dear Adam,

I have a rental that had been broken into a few months ago.  I spent $600 to replace an iron door.  My question is, can I list the door as an asset that can be depreciated?

If yes, do I have a choice to select 27.5 years or 25 years?  When I select 25 years, I can get a 50% bonus depreciation, giving me more on my refund.

Finally, what asset type is the door considered?  Here are the choices I have: residential rental property, non-listed property, or listed property.  

Thank you so much for your help!

Michael

Answer
I would consider it a structural part of the building and therefore 27.5 straightline depreciation for component of a residential rental.  If a commercial rental it would be 39 years.  The other factor to consider is whether you meet the income threshold for any casualty theft and loss deductions.  In order to even consider that, you need to itemize deductions on Schedule A, reduce the amount of loss (value of items before vs. value of items after event) by $100.  The deductible amount of the loss is to the extent by which it exceeds 10% of your Adjusted Gross Income (AGI).

Adam Shay
CPA NC

Tax Law (Questions About Taxes)

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Adam Shay, CPA

Expertise

I have an expertise in individual income tax and income tax planning. I also have experience working with small businesses (variety of entities) on both income tax and accounting needs.

Experience

I have spent 5 years managing 15 franchised tax locations. For the past 6 months I have owned my own tax preparation and accounting firm the specializes in assisting small business and more complex individuals. Accountant Wilmington NC

Organizations
AICPA NCACPA

Education/Credentials
MBA from the University of Maryland BS from the University of Virginia

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