Depreciation on rental property

Purchased new heat pump for rental property ($3,500). Can I expense or do I have to depreciate and if so over 27.5 yrs. or can I do 5 or 7.

asked 01 Apr '11, 21:02

Diana 1
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accept rate: 0%

edited 05 Apr '11, 00:29

Rick 1
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1	Expensing is not allowed for rental property. Appliances are 5 years for rental furniture and fixtures. link answered 01 Apr '11, 22:22 Jessica May ... 11●1 accept rate: 0%

Jessica is correct, you cannot expense the costs. However, a heat pump is generally part of an HVAC (Heating, Ventilation and Air Conditioning) System, which means it falls in a special category and would have the same life as the building it is supporting. So assuming you have Residential Rental Property based on the 27.5 year life above, the Heat Pump would be depreciated over 27.5 years. Hope this helps,

John

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answered 01 Apr '11, 22:48

JohnL
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accept rate: 4%

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