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The entire amount that you financed is taken into account for 2016 tax purposes.
Note: If the AC cost is more than $2500, the AC is treated as permanent improvement to the building and should be entered as an asset (and be depreciated) and not as an expense. When going through rental income and expenses, the program asks about items purchased that cost $2500, be sure to answer them accordingly to your situation.
The entire amount that you financed is taken into account for 2016 tax purposes.
Note: If the AC cost is more than $2500, the AC is treated as permanent improvement to the building and should be entered as an asset (and be depreciated) and not as an expense. When going through rental income and expenses, the program asks about items purchased that cost $2500, be sure to answer them accordingly to your situation.
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