Depreciation options on HVAC system Rental Property

Forum|Forum|2 years ago
January 31, 2024
1 reply
9 views

This is for a 4-plex rental where I replaced two HVAC systems last year.

1. Can the labor portion be claimed as an expense and then only depreciate the equipment portion?

2. Do I have to use a 27.5-year depreciation schedule or is there a shorter period option using MACRS?

3. Is the Section 179 deduction an option?

Ask the Experts - Early Filers - Jan 2024

RobertB4444

Level 15

You should bundle the labor and the equipment as an asset. Then you can take the depreciation and - as long as you have income to use against it - you can claim the bonus depreciation as well.

@tmconcan

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Depreciation options on HVAC system Rental Property

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