where is new HVAC for rental depreciated

Forum|Forum|6 years ago
March 26, 2020
3 replies
54 views

where do I put the new HVAC system installed to figure the depreciation.d.

Only the equipment not the labor gets depreciated right.

TurboTax Business Windows

GiseleD

Level 14

Here's how to make these entries:

1) Once in your return, click Income & Expenses (tab at top of your screen).

2) Scroll down to Rental Properties and Royalties (Sch E) and click Edit/Add.

3) Click through the first two screens in this section until you get to the screen that says Rental and Royalty Summary. Click Edit next to the property in question.

4) Scroll down to Assets/Depreciation and click Update or Start.

5) Go to your asset summary.

6) Click + Add an asset.

7) Click the button next to Rental Real Estate Property.

😎 On the screen that says Tell Us a Little More About Your Rental Asset, click the button next to appliances, carpet, furniture.

9) On the next screens, follow the prompts to enter the asset. You CAN include the installation cost in the total asset cost.

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Carl

Level 11

Also, the new HVAC does become "a material part of" the rental structure. So it's classified as residential rental real estate and depreciated over 27.5 years.

It will not qualify for the SEC179 deduction. But it may qualify for the 50% Special Depreciation Allowance. It's a waste of time to take the allowance since I seriously doubt you have the "taxable" rental income to claim it against. So taking that allowance won't make a single penny of difference in your tax liability. But if you sell the property before reaching it's depreciation half-life, the recapture "will" hurt you tax-wise.