A response in this prior discussion
https://ttlc.intuit.com/community/tax-credits-deductions/discussion/can-a-water-heater-be-treated-as....
says (without citing any authority) that a water heater is considered part of the plumbing and therefore the building. So I would suggest you consider treating it as residential real estate property. It is not a land improvement (see Pub 946) those are paving parking areas, digging swimming pools, docks, bridges, etc.
I'm not sure recapture is that big a deal (TT will figure it out for you) but it is up to you to decide whether you would be better off with the deduction now or later.
**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
