Rental water heater expense

[charjean47]

I bought a water heater for a rental. I will count it as an expense because it only cost $600. I paid $300 labor of installing. Do I count the $300 labor as a repair or part of the water heater expense?

[tagteam]

Duplicate post. See:

Rental property expense regarding water heater (intuit.com)

[DawnC]

Include it as part of the expense.   Residential energy property costs are costs of new qualified energy property that is installed on or in connection with a home that you used during 2023 located in the United States.  Include any labor costs properly allocable to the onsite preparation, assembly, or original installation of the energy property.  Qualified energy property is any of the following.

• Certain electric or natural gas heat pump water heaters; electric or natural gas heat pumps; central air conditioners; and natural gas, propane, or oil water heaters.
• Natural gas, propane, or oil furnaces and hot water boilers.
• Certain biomass stoves and biomass boilers.
• Certain improvements or replacements of panelboards, subpanelboards, branch circuits, or feeders.