I still have more research to do into it, but some of the things I’ve learned so far:
1. This depreciation also includes items such as carpet, hardwood floors, and other things that usually have to be replaced during the lifetime of the property.
2. The depreciation can be accelerated, allowing you to get 52% of the tax benefit within the first two years.
3. Chattel depreciation usually runs about 10% of the worth of the property.
I have to talk to one of my group, who is the person who is setting up a company that will refer you to chattel appraisers nationwide. From what he has said, it costs around $600. Probably not worth it if you have only one small worth SFR, but if you have a lot of properties, that 10% that you can depreciate can add up. It’s an interesting concept.
