On various TT threads, I am seeing that that a brand new HVAC installed in a rental property becomes part of the property and, hence, the cost (around $7600 that I paid) has to be depreciated over 27.5 years. After following the prompts for Depreciation section and then onto Rental Real Estate, I reach a screen in TT, where it states that "since this is the first year of business use for this asset, you may deduct its full value this year or spread the deduction over several years." Then, I am given options of:
1. I'll spread the deduction over several years
2. I'll deduct the full value of the item this year (Take the Section 179 deduction)
3. I'll take a partial section 179 deduction this year
My question is: if the cost HAS to be depreciated over 27.5 years, why is TT giving me these options? Can I select Option 2 above? Thanks in advance.
