I had to replace an HVAC system 5 years into depreciation schedule after Hurricane Matthew. When new the system was $5,000 but I depreciated it as part of the cost basis on the home. 80% of value still remains. My loss on the system was $4,000. -- New HVAC system cost $10,000 and including repairs to the ducting system. .... Do I subtract the loss from the home basis, and add on the new system to the basis. ... continuing depreciation for 27.5 years . Or do I write off the old system and create a new depreciation schedule for the new HVAC system?
