bbs[at]mechanicsofmoney.com wrote:

- quote -

Thanks to all for your timely replies.

I also did some further research and found a number of
worthwhile articles on "Cost Segregation".

Regards

Dan Horgan

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Just a guess: Depreciate separately (prob. 5 year prop).
Cost basis for house should not include amount paid for
these items. Use guesstimate of fmv at time of sale to
determine how much was allocated to each item that came with
house.

Gary Brolis
http://www.MechanicsofMoney.com
http://www.MechanicsofMoney.com/blog.php

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dfhea wrote:

- quote -

Personal property purchased with the building and land can
be depreciated separately according to its own class life.

Some might even go so far as to separately depreciate the
pipes and lines in the ground too, but that might be a
little extreme.

-Mark Bole

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dfh1[at]ev1.net (dfhea) posted:

- quote -

Appliances he purchased separately can/should be deducted on
a separate scale (see Pub 527); unless the appliances
included in the sale were itemized as an element of the
purchase price, it would be hard to justify a separation of
cost -- until or unless he replaces them.

Bill

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I have a client who bought a brand new house and is renting
it out.

Some appliances came with the house and others he had to
purchase himself.

Does he have to depreciate the included appliances as part
of the house(27.5 years) or can he depreciate them
separately?

Thanks,

Dan

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >