Rental Expense or Depreciation

[fredr]

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.

[TaxGuyBill]

"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.

[fredr]

Yes this was a portion of the cost

[fredr]

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

[fredr]

Thanks ,I was leaning toward depreciation also.

[TaxGuyBill · Accepted solution]

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.