Depreciation options on HVAC system Rental Property

[tmconcan]

This is for a 4-plex rental where I replaced two HVAC systems last year.

1. Can the labor portion be claimed as an expense and then only depreciate the equipment portion?

2. Do I have to use a 27.5-year depreciation schedule or is there a shorter period option using MACRS?

3. Is the Section 179 deduction an option?

[RobertB4444]

You should bundle the labor and the equipment as an asset. Then you can take the depreciation and - as long as you have income to use against it - you can claim the bonus depreciation as well.

@tmconcan