On the sale of a rental unit on Form 4797 how do you treat the depreciation on the HVAC system.
This was a replacement HVAC system that was put in after the rental property was placed in service.
I used the straight-line depreciation for 27.5 years on this.
Depreciation taken $1,726,86 and remaining depreciation not taken is $2,273.14.
Is the depreciation taken added to the total depreciation taken with the building?
Is the depreciation not taken $2,273.14 added to the basis of the property?
My second question is on appliances still in the 5-year depreciation at time of rental property sale.
Depreciation taken on 2 appliances up to time of rental sale is $840.81 and depreciation not taken $143.61.
Does this need to be reported on Form 4797 and how is this reported.
Last question is do you have to report for any depreciation taken on appliances that are already past the 5-year period and are fully depreciated ?
Rental property was held for 17 years.
