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

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

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1 Best answer

Intuit Alumni

Jun 1, 2019 7:27:07 AM

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.

Intuit Alumni

Jun 1, 2019 7:27:07 AM

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.

New Member

Mar 31, 2023 12:04:07 PM

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

New Member

Mar 31, 2023 2:30:31 PM

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