Yes, you have options:
1. Include the HVAC in the basis and pay the taxes.
2. Include the HVAC in the basis and pay the taxes. File form 3115
3. Ignore the HVAC expense
4. Amend prior returns to include the HVAC expense and depreciate it since it is less than 3 years old. You will get a refund plus interest.
The IRS requires you to depreciate the house but it does not require you account for every expense.
@earth777
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