Rental Expense or Depreciation

Forum|Forum|6 years ago
December 6, 2019
5 replies
22 views

I have a client who has a residential rental who converted a existing oil fired hot water to a natural gas unit. This cost the landlord $2900.00. Does this have to be depreciated or can it be expensed? All that was done was changing from a oil fired gun to a natural gas gun.

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Best answer by TaxGuyBill

Is the cost broken down between the 'gun' and the piping? If so, they both might be able to be deducted through the De Minimis election.

Otherwise, I would depreciate over 27.5 years.

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TaxGuyBill

Level 15

"residential rental ... hot water"

$2900 to retrofit a water heater? That doesn't make sense to me. Do you have the invoice to see what it actually covered? I suspect that cost may include some substantial re-piping (oil to natural gas) in the home.

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fredrAuthor

Level 5

Yes this was a portion of the cost

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fredrAuthor

Level 5

And this was for a hot water heating system for the apt building

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fredrAuthor

Level 5

Thanks ,I was leaning toward depreciation also.

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TaxGuyBillAnswer

Level 15

Is the cost broken down between the 'gun' and the piping? If so, they both might be able to be deducted through the De Minimis election.

Otherwise, I would depreciate over 27.5 years.

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