I also had to replace a furnace in my rental property, but in my case the furnace was not being depreciated as a separate asset since it was part of the house when it became a rental, so it's not simple to just dispose of that asset. Does it make sense to try to determine what portion of the house value to assign to the furnace, and what portion of the depreciation? If so, how should this be done? I assume if I don't do this, then I wouldn't record the disposition of the old furnace and would forego the deduction of the remaining depreciation value in the 2021 tax year. I would still start depreciating the new furnace over 27.5 years as a new asset. Is that correct?
