@lilong10 wrote:
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.
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))."
It is depreciated over 27.5 years for a residential rental.
*IF* your total cost of all of those items qualify to be under those amounts, you can make that election and and deduct it as a repair/maintenance. But just a reminder, (a) you add up the cost of ALL maintenance, repairs, improvements, etc., and (b) you use the LOWER of $10,000 or 2% of the Unadjusted Basis. So if the house cost $200,000, the threshold is $4000.
