I have a rental property, that was in service prior to needing the furnace replaced. I understand that the furnace is an improvement, not a repair and will have to be depreciated, but I have a question about which year applies. I have a receipt dated 12/23 for the purchase and installation of the furnace; however, the payment was not made until January. I would like to confirm that the depreciation should start on the installation date. Is this correct?
