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February 18, 2025
Question

Partnership rental property furnace purchased

  • February 18, 2025
  • 1 reply
  • 0 views

Do you have to depreciate a furnace that was put in residential rental property?  It was to replace a furnace that quit working.  The new furnace will probably not last for 27.5 years that depreciate states for a furnace.  Can you use 179 or the 50% write off?

1 reply

February 19, 2025

You do have to depreciate it. If the furnace has to be replaced before the normal useful life is over, you can deduct the undepreciated cost at that time. You cannot use section 179 or bonus depreciation on improvements for residential rental property.

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