Replacing HVAC in Rental, but still depreciating HVAC from 10 years ago

Forum|Forum|2 years ago
February 15, 2024
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Hello, I replaced the HVAC in my rental property in 2023, but I'm still depreciating the previous HVAC (as a separate item from the property itself) that was replaced 10 years ago. I know how to enter the new HVAC as a depreciated item (for 27.5 years). My question is what do I do about the previous HVAC? Do I keep depreciating, since I did not get to depreciate the entire amount (whoever came up with 27.5 as a "usable life" for HVAC must have been on some good stuff)?

TurboTax Premier Online

Best answer by AmyC

Follow these steps to recoup the remainder:

Go to your summary asset screen
Select the retired HVAC unit
You will want to mark that you disposed of the asset.
Confirm prior depreciation
Special handling? select No
Sale information, enter sales price $0, unless you sold it for more
This will allow you to take the rest of the amount now.
You will see the loss on the asset worksheet, and the disposition report the most clearly. For tax purposes, he Form 4797 will show the report.

Here is an example from a fake return using appliances.

AmyCAnswer

Employee

Follow these steps to recoup the remainder:

Go to your summary asset screen
Select the retired HVAC unit
You will want to mark that you disposed of the asset.
Confirm prior depreciation
Special handling? select No
Sale information, enter sales price $0, unless you sold it for more
This will allow you to take the rest of the amount now.
You will see the loss on the asset worksheet, and the disposition report the most clearly. For tax purposes, he Form 4797 will show the report.

Here is an example from a fake return using appliances.

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