Rental property, new heat pump. What is "TYPE OF ASSET" for this new equipment? Is it "J - Qualified Rental Improvements"?

[kathylisbeth]

I'm looking at Sched E Asset Entry Worksheet #4

[AnnetteB · Accepted solution]

No, a heat pump is considered a component of the property itself.

As such, it is depreciated over 27.5 years for a residential rental property.  This means it will be categorized as I – Residential Rental.

For your reference, take a look at IRS Publication 527.  There is a handy table on page 9 of the document.

[brosier]

Turbo Tax is only "happy" if I use 39 years.  MACRS, NR, SL, MM ON ASSET SHEET

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[brosier]

Thanks, and yes I found that you don't use HVAC in "Type of Asset" but Residential Rental instead. Who would have guesssed?