Thank you, this was very helpful. If I chose to use "Option 2: Treat the replacement property as a new asset", since it would simplify things in future tax years, how should I handle my HVAC system's entry in TT for the 2020 tax year? Do I just continue to depreciate the HVAC system's cost as though it were part of the new asset or do I need to mark it as taken out of use in 2020 on the day the relinquished property was sold?
