Depreciation

[AnythingsPossible]

What is the proper form to use for depreciation of new windows and new furniture? I imagine it is a different time frame for these purchases. Does the 50% rule apply to both?

[TomCopeland]

Originally Posted by AnythingsPossible

What is the proper form to use for depreciation of new windows and new furniture? I imagine it is a different time frame for these purchases. Does the 50% rule apply to both?

I would treat new windows as a home improvement - depreciate over 39 years, not eligible for the 50% bonus rule.
I would treat new furniture as personal property - depreciate over 7 years, is eligible for the 50% bonus rule.

[AnythingsPossible]

Why would something that won't technically last 39 years be depreciated over that amount of time? Seems like a long time to me. Based off of that, I will only be deducting approximately 30 dollars a year based on time/space and the number of years for an improvement that cost nearly 6,000. My math may not be quite right, but it still seems quite low.

My new furnace which cost over $5000 last year gave me an $8 depreciation deduction for this year. Yep. $8.

[TomCopeland]

Originally Posted by AnythingsPossible

Why would something that won't technically last 39 years be depreciated over that amount of time? Seems like a long time to me. Based off of that, I will only be deducting approximately 30 dollars a year based on time/space and the number of years for an improvement that cost nearly 6,000. My math may not be quite right, but it still seems quite low.

It's true that home improvements give you very little deduction each year. If they wear out before the end of 39 years you can claim all remaining depreciation in that year.