Is a new electrical panel box & new breakers deductible?

[MinhT · Accepted solution]

If this equipment is for your home (residence), it is not deductible.

If this is for a rental property, it is deductible as repairs if it costs less than $2,500. If it costs over $2,500, the equipment has to be capitalized and depreciated.

[P_Ohana]

If the cost is below $2500, can I elect to depreciate?

[Ericka4]

this is from the irs website. 

You may be able to take the credits if you made energy saving improvements to your home located in the United States in 2023.

Home.

 

A home is where you lived in 2023 and can include a house, houseboat, mobile home, cooperative apartment, condominium, and a manufactured home that conforms to Federal Manufactured Home Construction and Safety Standards.

You must reduce the cost basis of your home if a residential energy credit is allowed for any expense for any property. The increase in the basis of the property that would result from the expenses will be reduced by the amount of the allowed credit.

Main home

 

Your main home is generally the home where you live most of the time. A temporary absence due to special circumstances, such as illness, education, business, military service, or vacation, won't change your main home

Costs.

 

For purposes of both credits, costs are treated as being paid when the original installation of the item is completed, or, in the case of costs connected with the reconstruction of your home, when your original use of the reconstructed home begins. For purposes of the residential clean energy credit only, costs connected with the construction of a home are treated as being paid when your original use of the constructed home begins. If less than 80% of the use of an item is for nonbusiness purposes, only that portion of the costs that is allocable to the nonbusiness use can be used to determine either credit.