What is the MACRS depreciation period for STR appliances?

Appliances used in a short-term rental — refrigerators, washers, dryers, dishwashers, microwaves, window AC units, and similar items — are classified as 5-year MACRS personal property under asset class 00.12. They qualify for 100% bonus depreciation in 2026, allowing you to deduct their full cost in the year placed in service.

Is a built-in dishwasher treated differently than a portable dishwasher for depreciation?

A built-in dishwasher is generally still treated as a 5-year MACRS appliance (personal property) rather than a structural building component, even though it is installed into cabinetry. It can be physically removed without structural damage to the building. A portable, countertop dishwasher is also 5-year personal property. In either case, both qualify for 5-year MACRS depreciation and bonus depreciation.

Can I use Section 179 to expense STR appliances immediately?

Yes. STR appliances qualify for Section 179 expensing under IRC §179, subject to the income limitation (Section 179 cannot create a net loss). With 100% bonus depreciation also available in 2026, both methods produce the same Year 1 result for appliances — full cost deduction. Most operators use bonus depreciation as the primary method since it has no income limitation.

Do I need to keep receipts for STR appliances to claim depreciation?

Yes. You need to document the cost, date of purchase, and date placed in service for each appliance. Keep original receipts or purchase records, along with photos showing the appliance in the rental unit. For appliances purchased with the property (included in the acquisition price), document your basis allocation methodology.

April 6, 2026 · 7 min read

Depreciating Appliances in Your Short-Term Rental

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Appliances in your short-term rental are 5-year MACRS personal property under IRC §168 and MACRS asset class 00.12. In 2026, they qualify for 100% bonus depreciation—meaning you can deduct the full cost of every refrigerator, washer, dryer, dishwasher, and microwave in the year you place them in service, rather than spreading that deduction over five years.

Which Appliances Qualify as 5-Year MACRS Property

Common STR Appliances: 5-Year MACRS

MACRS Class 00.12 · 100% Bonus Eligible

All of the following qualify as 5-year personal property eligible for bonus depreciation:

Refrigerator Washer Dryer Dishwasher Microwave (built-in or countertop) Range / Oven Window AC unit Portable AC / dehumidifier Coffee maker / espresso machine Blender / small appliances Toaster oven Instant Pot / pressure cooker Waffle maker Wine cooler / beverage fridge Portable space heater

Example: Fully equipping a new STR kitchen: refrigerator ($1,800) + range ($1,200) + dishwasher ($900) + microwave ($650) + washer/dryer ($1,600) = $6,150. With 100% bonus depreciation, $6,150 deducted in Year 1.

Appliance vs. Building Component: The Key Distinction

The defining characteristic of an appliance (personal property) vs. a building component (real property) is whether it can be removed without structural damage to the building. The IRS looks at permanency of attachment and whether the item is designed to be moved.

Item	Classification	Recovery Period	Reason
Freestanding refrigerator	Personal property	5 years	Removable without damage
Built-in refrigerator (panel-ready)	Personal property	5 years	Still removable appliance
Freestanding dishwasher	Personal property	5 years	Portable, not structural
Built-in dishwasher	Personal property	5 years	Can be removed; appliance function
Window AC unit	Personal property	5 years	Removable; not integrated
Central HVAC system	Building component	27.5 years	Integrated building system
Built-in oven (range)	Personal property	5 years	Appliance; not structural

Bonus Depreciation vs. Section 179 for Appliances

Both methods produce the same Year 1 result when 100% bonus depreciation is available: full cost deduction. The practical differences:

Bonus depreciation: Automatic (you opt out if you don't want it). Can create a net loss. No income limitation. Applied by asset class.
Section 179: Elected on Form 4562. Cannot create a net loss. Limited to $1,160,000 in 2026. Applied per asset.

For most STR operators, bonus depreciation is the simpler and more flexible choice for appliances. Use Section 179 strategically to fine-tune your taxable income in years where creating a loss would be disadvantageous.

Real Dollar Impact

An STR operator furnishes three rental units in 2026, spending $5,200 per unit on appliances ($15,600 total). With 100% bonus depreciation at a 30% combined federal/SE rate, that's $4,680 in immediate tax savings vs. $936/year over 5 years under standard MACRS. The time value of getting that money now vs. over five years is substantial.

Documentation: What You Need to Keep

For every appliance you depreciate, maintain these records:

Purchase receipt showing cost, date, and item description
Placed-in-service date: the date the appliance was installed in the rental and available for guest use
Photo of the appliance in the rental unit, ideally with a date stamp
Model and serial number for high-value appliances (useful for insurance claims too)

Batch Documentation Tip

When you launch a new STR or re-furnish an existing one, do a single walkthrough with your phone camera and photograph every appliance in place. Add the date to the photo metadata. This creates a contemporaneous record that documents both the appliance itself and its presence in the rental unit on a specific date.

Maintenance and Repairs: Separately Deductible

The depreciation deduction covers the cost of the appliance itself. Separately from depreciation, the ongoing maintenance and repair costs for those same appliances are immediately deductible as ordinary business expenses in the year incurred. A repair that keeps an appliance functioning (fixing a dishwasher pump, replacing a refrigerator door seal) is a current expense—not a capital improvement. Only the purchase of a new replacement appliance is capitalized and depreciated.

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Disclaimer

This article is for informational purposes and does not constitute tax, legal, or financial advice. Tax rules vary based on your specific situation, filing status, entity structure, and jurisdiction. Always consult a qualified CPA or tax professional for guidance on your specific tax situation. IRS rules and thresholds are subject to change—verify current requirements at irs.gov before filing.