Rental property HVAC replacement loan deduction

[dratr321]

I installed a new HVAC and Water heater in 2022, but paid for them with a 36 month loan (no interest). I made twelve payments in 2024. Does paying for it with a loan allow me to deduct it differently than if I would have pay for the replacements with cash in 2022?

[MaryK4]

No, because it is a depreciable asset, the payment method does not change how it is reported- it would have been reported in 2022 and depreciated or expensed accordingly).  If you had paid any interest, that is a deductible expense in the year paid.