We had to replace our HVAC system in 2020. For our Home office, is that considered a repair/maintenance? Or do I have to make it an asset?

[MaryK4]

It would have to be included as an asset because it is a capital improvement. Components of a central heat or air conditioning system (whether in, on or adjacent to the building) are classified as structural components of the building.  As such, these should be set up as a new asset and depreciated over 27.5 years.

[sarah-chavez]

Thank you Mary!