Chattel depreciation (also known as ‘cost segregation’, ‘chattel valuation’, and ‘asset valuation’) is the process of placing a value on the personal property in a real estate investment property, then producing an IRS approved depreciation schedule. Depreciation can be deducted from federal income taxes over 5, 10, or 15 years.

Chattel is considered personal property that can be depreciated under IRS rules. Some examples of chattel include: kitchen appliances (stoves, range hoods, etc.) that are not permanently attached to real property, flooring, light fixtures, cabinets, draperies, window coverings, and many other items. Chattel can be any owned, movable, and tangible personal property, other than the actual building itself.

In addition to depreciating chattel, the IRS also allows you to depreciate land improvements. An example would be certain types of landscaping, sprinkler systems, driveways, walkways, fences, and a host of others. 

For more information on Chattels, please send an email or respond to this post.