TaxGuyBill
Level 15
02-16-2023
03:24 PM
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If they are items separate from the building, like appliances or carpeting, yes, you can use Bonus on the LOWER of (a) the cost and (b) the Fair Market Value when they first became available for use in the rental.
But prior improvements to the building are all part of the building, which is depreciated over 27.5 years, starting when the building becomes available for rent.