Also, the new HVAC does become "a material part of" the rental structure. So it's classified as residential rental real estate and depreciated over 27.5 years.
It will not qualify for the SEC179 deduction. But it may qualify for the 50% Special Depreciation Allowance. It's a waste of time to take the allowance since I seriously doubt you have the "taxable" rental income to claim it against. So taking that allowance won't make a single penny of difference in your tax liability. But if you sell the property before reaching it's depreciation half-life, the recapture "will" hurt you tax-wise.
