I'm still quite confused about how to depreciate an new central AC...
There seems to be different voices for 7 years or 27.5 years depreciation time. However, I found the depreciation could be 100% in one year(if I understand correctly):
"
The 2013 final "repair regulations" added a safe harbor election for building property held by taxpayers whose average annual gross receipts for the three preceding tax years is $10 million or less. Such taxpayers are considered a "qualifying small taxpayer" for purposes of the regulation (Reg. Sec. 1.263(a)-3(h)).
Under the safe harbor, a qualifying small taxpayer may elect to not apply the improvement rules to an eligible building property if the total amount paid during the tax year for repairs, maintenance, improvements, and similar activities performed on the eligible building does not exceed the lesser of $10,000 or 2 percent of the unadjusted basis of the building (Reg. Sec. 1.263(a)-3(h)(1))."
Can anyone comment on this?
