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February 5, 2023
Question

I replaced the heat pump in my 2nd home for $8k before renting it out a few months later. Can I include the heat pump as a Sch E depreciable asset/expense?

  • February 5, 2023
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    1 reply

    February 5, 2023

    Yes, the heat pump can be included as a depreciable asset on Schedule E for the rental. The heat pump is a component of the property and depreciated over 27.5 years for a residential rental property. You begin to depreciate your rental property when you place it in service for the production of income (when first rented).

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