topic Can I deduct new furnace from rental income if it was a month before I rented the house? in Investors & landlords

Can I deduct new furnace from rental income if it was a month before I rented the house?

ramsgusom — Tue, 04 Jun 2019 19:52:33 GMT

2018 was the year the house turned from primary residence to a rental house. I listed the house for rent In February 2018. My tenant did not move in until July 1st. I spent more than $2000 in May 2018 to install a new furnace because the previous one had broken down.

Can I deduct this from my rental income? I was living in the house at this time, but technically I would have moved out if I had found someone to rent my house earlier. Aka the house was available to rent from Feb 2018, even though someone only moved in July 2018.

In general, yes. Provided that the expense was considere...

DanielV01 — Tue, 04 Jun 2019 19:52:36 GMT

In general, yes. Provided that the expense was considered a repair and not an improvement, you generally qualify to deduct expenses necessary to prepare the property to be rented. This type of expense generally would be considered a repair as long as it is not part of a remodel of the room. The furnace itself is considered depreciable property, but can be fully expensed because it is less than $2000.

This FAQ discusses this and other types of deductible rental expenses: https://ttlc.intuit.com/replies/4209856

Re: In general, yes. Provided that the expense was considere...

forinterest — Mon, 17 May 2021 02:56:31 GMT

This would need a speedy answer to be useful, as taxes are due tomorrow.

If the furnace is $3027 (so it can't be itemized to lower than $2500) is there any way to expense it?

Even partially? And why does TurboTax let me choose the Section 179 deduction if Technically a furnace doesn't qualify for section 179 on Rental Property