Depreciation of $6900 HVAC in rental property

Forum|Forum|2 years ago
January 17, 2024
4 replies
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$6900 HVAC in rental property. What are the rules for depreciation?

DoninGA

Employee

The HVAC is depreciated at the same rate as the rental property, 27.5 years.

TomK2023

Per Champ DoninGA's reply above...

The HVAC system (including installation fees, permit costs, labor, etc.) are costs associated with this improvement to your rental property, and must be depreciated.

IRS Pub. 527 - Residential Rental Property

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AmeliesUncle

While I generally agree with the answers above, there could be exceptions for certain situations.

For example, if it is a commercial rental property, if there are several HVAC units, or if the HVAC is an easily removable item (similar to a window air conditioner), there could be other things to consider.

Carl11_2

Employee

For residential rental real estate, a new HVAC unit (central air) becomes "a physical part of" the structure. Therefore, it's classified as residential rental real estate and depreciated over 27.5 years.