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January 23, 2023
Question

In my single family rental property the air conditioner broke beyond repair and I had to replace the entire unit for $6000. Is this an asset or expense?

  • January 23, 2023
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1 reply

Carl11_2
Employee
January 23, 2023

Assuming this is a central air unit and not a window A/C, it becomes "a material part of" the structure. So it's classified as residential rental real estate and depreciated over 27.5 years.