Appliance Depreciation for Security Deposit Deductions
Calculate remaining value for refrigerator, range, dishwasher, and rental appliance deposit deductions.
Short answer
Appliance claims should separate repairable damage from replacement value. If a refrigerator has a ten-year benchmark and was six years old, the worksheet starts with four remaining years of value.
Worksheet preset: appliance depreciation article
Source: HUD Appendix 5D refrigerator life benchmark; IRS Publication 527 appliance depreciation class. HUD examples list refrigerators at ten years; IRS Publication 527 also treats appliances as depreciable rental property.
Formula: chargeable = max(0, replacement_cost x remaining_life / useful_life) - wear_allowance, then multiplied by documented damage share.
Appliance comparison
| Scenario | Better worksheet input | Risk | |---|---|---| | Broken shelf | Repair part and labor | Full replacement overstates cost | | Burned-out old appliance | Age and prior condition | May be ordinary failure | | Tenant-caused impact damage | Replacement or repair scope | Needs photos and invoice |
How to use age
Use purchase records, model history, move-in notes, or a reasonable estimate. If age is uncertain, run two scenarios: landlord's claimed age and tenant's best-supported age.
Worksheet preset: appliance depreciation article
Source: HUD Appendix 5D refrigerator life benchmark; IRS Publication 527 appliance depreciation class. HUD examples list refrigerators at ten years; IRS Publication 527 also treats appliances as depreciable rental property.
Formula: chargeable = max(0, replacement_cost x remaining_life / useful_life) - wear_allowance, then multiplied by documented damage share.
FAQ
Does IRS depreciation decide the deposit amount?
No. IRS materials are a useful cross-check for asset life, but deposit disputes depend on state law, lease facts, and documentation.
What if only a part broke?
Use repair cost for the part and labor instead of full appliance replacement.