If we completed a 10-year rent-to-own agreement to purchase our home and closed in December 2018, does that count as "bought a home" and can we claim AC bought in 2017?

[Anita01]

Yes, Congratulations, you bought a home.  No, the AC was bought in 2017 so would have to have been claimed in 2017.

If this was a full air conditioning system, you could add it to the cost basis of the home to lower the gain whenever you sell.

[SweetieJean]

Even though the user was still legally a tenant in 2017?

[Anita01]

They wouldn't have been able to deduct it in 2017 for that reason, but that's the year in which they would have needed to report it, so they basically lose the deduction and can maybe add to cost.

[hynnek]

So even though the cost of the house was spread out over the last 11 years, we can still claim it? How much do we claim?

[Anita01]

No, you cannot claim it. for a credit or an expense deduction in 2018.  You can possibly add it to your cost basis to use to lower your gain if and when you sell.  You would add it as an improvement made.

[hynnek]

Not the Air Conditioner - the home? Do we claim the home?