The CARES Act contains several tax savings benefits for businesses, including specific terms for HVAC and HVAC depreciation life – with the goal of enhancing Indoor Air Quality (IAC). And Rental properties qualify as a business as we found with 199A
For example, under Section 168 of the tax code, the cost of all equipment and components of the “heating, ventilating, and air conditioning system” may be fully deducted for tax purposes in the first year. The CARES Act reduces the depreciation schedule to 15 years and creates a bonus depreciation that allows the taxpayer to take a full deduction of certain costs in a single year. The 100% bonus depreciation applies to qualified property acquired and placed in service before January 1, 2023*.
@AmeliesUncle "The CARES Act permanently reduces the depreciation schedule to 15 years and creates a bonus depreciation that allows the taxpayer to take a full deduction of certain costs in a single year."
Tax Cuts and Jobs Act (TCJA), P.L. 115-97, makes HVAC costs eligible for expensing under Sec. 179
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