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April 11, 2022
Question

New HVAC installed just prior to sale

  • April 11, 2022
  • 1 reply
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Unfortunately, I had to replace the HVAC system of our rental property about a month before selling it. Should this be accounted for as a capital improvement or an expense? Thanks!

1 reply

April 11, 2022

The correct way is to enter as a capital improvement. When you enter the sale of the property, all of the cost of the HVAC will be depreciation when the property and improvements are sold.

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