Can I deduct a new HVAC unit?

nfisher07 · ‎June 6, 2019

DS30 · ‎June 6, 2019

It depends -

NO - If this HVAC unit is for a personal use property (primary/vacation home) - you will not be able to take a deduction. Instead you will increase the basis in the home by the cost of the HVAC unit.

Yes - If this HVAC unit is for a business/rental property - You would be able to deduct this are a business expense if the unit was not considered a capital/leasehold improvement to the business property. If it is considered a capital or leasehold improvement, then you would be able to claim a depreciation deduction over the useful life of the unit.

Please refer to this IRS link for more information about Business Expenses

You may also be able to deduct the full amount of the HVAC unit under business safe harbor election. Please see information about the safe harbor election below.

https://ttlc.intuit.com/replies/4682171

View solution in original post

DS30 · ‎June 6, 2019

It depends -

NO - If this HVAC unit is for a personal use property (primary/vacation home) - you will not be able to take a deduction. Instead you will increase the basis in the home by the cost of the HVAC unit.

Yes - If this HVAC unit is for a business/rental property - You would be able to deduct this are a business expense if the unit was not considered a capital/leasehold improvement to the business property. If it is considered a capital or leasehold improvement, then you would be able to claim a depreciation deduction over the useful life of the unit.

Please refer to this IRS link for more information about Business Expenses

You may also be able to deduct the full amount of the HVAC unit under business safe harbor election. Please see information about the safe harbor election below.

https://ttlc.intuit.com/replies/4682171