Cost Segregation: What Can Be Depreciated in a Kitchen?

Why It Matters

Accelerated depreciation in short‑term rental kitchens boosts owners’ cash flow and tax efficiency, making expert cost‑segregation analysis a strategic necessity.

Key Takeaways

• Cabinets and countertops qualify for bonus depreciation in short‑term rentals.
• Kitchen sinks, drains, and connections are also bonus eligible items.
• Appliances and their dedicated wiring can be fully depreciated over five years.
• Most flooring types, except integral tile, receive bonus depreciation treatment.
• Consult a cost segregation specialist to verify property‑specific eligibility.

Summary

The video explains how cost segregation can be applied to kitchens in short‑term rental properties, highlighting which components qualify for accelerated depreciation under current tax rules.

Edward Griffith points out that cabinetry and countertops are treated as bonus‑eligible assets, while sinks, drain assemblies, and their connections also qualify. Appliances such as dishwashers, ovens, and exhaust fans fall under five‑year property and can be fully written off, including the dedicated wiring and circuit breakers. Most flooring—vinyl, laminate, and floating types—receives bonus treatment, whereas integral tile is generally considered part of the building structure and is excluded.

He notes, “cabinets >> are bonus eligible,” and warns that countertop receptacles are a gray area that may face audit scrutiny because the IRS allows any plug to be used. The discussion underscores the distinction between short‑term and long‑term rentals, with the former offering broader eligibility for bonus depreciation.

Accelerating these deductions can significantly improve cash flow for rental owners, but the nuanced rules mean professional cost‑segregation advice is essential to avoid misclassification and potential audit issues.

Original Description

What parts of a kitchen can be depreciated faster through cost segregation?

In this video, we break down common kitchen components and explain which items may qualify for accelerated depreciation instead of being depreciated over 27.5 or 39 years.

Learn how cost segregation studies identify 5, 7, and 15-year assets, potentially helping real estate investors maximize tax deductions and improve cash flow.

Interested in working with Edward for a cost segregation study?

Click here: https://go.therealestatecpa.com/youtubecs

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