In my single family rental property the air conditioner broke beyond repair and I had to replace the entire unit for $6000. Is this an asset or expense?
Announcements
Attend our Ask the Experts event about Tax Law Changes - One Big Beautiful Bill on Aug 6! >> RSVP NOW!
Do you have a TurboTax Online account?
We'll help you get started or pick up where you left off.
In my single family rental property the air conditioner broke beyond repair and I had to replace the entire unit for $6000. Is this an asset or expense?
In my single family rental property the air conditioner broke beyond repair and I had to replace the entire unit for $6000. Is this an asset or expense?
Assuming this is a central air unit and not a window A/C, it becomes "a material part of" the structure. So it's classified as residential rental real estate and depreciated over 27.5 years.