Carpeting and resilient flooring have an economic lifespan of about 5 years, sometimes less under heavy use. Water heaters and dishwashers are good for about 5 years. Cabinets and plumbing fixtures are good for about 15 years, sometimes more. A heater is good for 15 years.
I don’t know how long the IRS thinks these items last. Depreciating a 5-year lifespan by 52% in the first couple years might be okay because it would normally depreciate about that fast anyway.
You’d still have to deal with the IRS’s interpretation of what is personal property, though. Most people would agree that a Persian rug that can be picked up in 10 seconds is personal property whereas the wall-wall carpeting and tile that has to be installed by a craftsman is not personal property. Speaking of which, installation costs are a large part of it, and personal property wouldn’t legitimately include those costs. As I said before, I’m not sure how calling those items personal property would be a benefit unless there’s some double dipping going on.
While we’re at it, personal property would have a resale value. Relative to when it’s installed new, what’s the value of used tile flooring or cabinetry? It’s a lot less than what they add to the value of the realty, I can guarantee that.
Putting your money through offshore banking accounts is all fine too, until the IRS figures out what you’re doing, and then it becomes a lot more trouble than its worth. More than one tax program has proven to be problematic, and it looks like these guys are selling something. You definitely want to know before you go.
Their fees are a bit suspect, too. An appraisal on the realty would only average $350, why is it more expensive to appraise the finishes the house would normally come with?
