Since you already used the safe harbor election for appliances, the window replacements will be depreciated. You are on the right track to depreciate the full cost of the windows as a component of the residential real estate over 27.5 years.
Since you are entering the full cost of the windows as an asset for depreciation, that $12,000 cost has been accounted for. It was already paid by the loan company and you are paying off the loan. Therefore, if you were to claim the amounts paid for the loan, it would be double-dipping the deduction. That is why you cannot claim the payments made for the loan as a deduction. You would only be able to claim interest on the loan, if there was any interest charged.
@MM025
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
