Welcome back! Ask questions, get answers, and join our large community of tax professionals.
cancel
Showing results for 
Search instead for 
Did you mean: 

Rental Expense or Depreciation

fredr
Level 4
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.
0 Cheers

This discussion has been locked. No new contributions can be made. You may start a new discussion here

1 Best Answer

Accepted Solutions
TaxGuyBill
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.

View solution in original post

0 Cheers
5 Comments 5
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.
0 Cheers
fredr
Level 4
Yes this was a portion of the cost
0 Cheers
fredr
Level 4
And this was for a hot water heating system for the apt building
0 Cheers
fredr
Level 4
Thanks ,I was leaning toward depreciation also.
0 Cheers
TaxGuyBill
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.
0 Cheers