New AC System

[CJC1]

I purchased a new AC system for my rental.  I know it needs to be capitalized and depreciated.  I am at the Asset/Depreciation part in Turbo Tax.  There is no option for AC system.  I can click 'other' but it asks questions that don't really seem to apply like "have you used this item 100% for this business..'  To me, it's a rental, not a business. 

Then it asks for depreciation method...(straight line or ADS).  Not sure what i should choose.  Then it asks if i want to depreciate over time or deduct the full value this year.  To me deducting the full value makes sense since i have a tax liability. Am I even in the correct area?  Thank you for your assistance!

[Carl]

If this was a new compressor for outside and a blower for inside (central air) then it's just as you say and is classified as residental rental real estate. That new equipment is "a physical part of" the rental property now, which is the correct line of thinking on your part. So it's depreciated over 27.5 years.

Now depending on it's cost, if when entering it as an asset if the program gives you the option to expense it, understand that it doesn't qualify for the expense option *unless* this was a case of where you only replace the broken compressor outside, or you only replaced the broken blower inside. So if it qualifies to be expensed, it's your choice. But I would recommend you expense it.

[surgerygalore]

hello!

Agree with Carl

I would add if by new AC you mean a window unit, then you will depreciate under appliances in TTax, shorter asset life, higher depreciation