I purchased a new whole house AC system for my rental (not a window unit) at a cost of $3500. I know it needs to be capitalized and depreciated. I am at the Asset/Depreciation part in Turbo Tax. There is no option for AC system. I can click 'other' but it asks questions that don't really seem to apply like "have you used this item 100% for this business..' To me, it's a rental, not a business.
I have 3 questions:
1) Is the Asset/Depreciation part in Turbo Tax the correct area to add an asset for depreciation?
2) For the depreciation method, do i use straight line or ADS?
3) Why does Turbo Tax ask if i want to depreciate over time or deduct the full value this year? If i am able to deduce the full value this year, then why add as an asset and not just show as an expense? Deducting the full value makes sense since i have a tax liability.
Thank you!
