fredr
Level 4
12-06-2019
05:16 PM
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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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TaxGuyBill
Level 15
12-06-2019
05:16 PM
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"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.
$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
Level 4
12-06-2019
05:16 PM
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Yes this was a portion of the cost
fredr
Level 4
12-06-2019
05:16 PM
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And this was for a hot water heating system for the apt building
fredr
Level 4
12-06-2019
05:16 PM
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Thanks ,I was leaning toward depreciation also.
TaxGuyBill
Level 15
12-06-2019
05:16 PM
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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.
Otherwise, I would depreciate over 27.5 years.
