Discussion:Depreciation of HVAC

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{{ForumReplyPost|UserID=Dnc0716|Date=10 April 2008|Text=You repair the original unit. If a new unit is purchased, then it is a capital asset with a 7 year life.}} {{ForumReplyPost|UserID=Dnc0716|Date=10 April 2008|Text=You repair the original unit. If a new unit is purchased, then it is a capital asset with a 7 year life.}}
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 +{{ForumReplyPost|UserID=Foxttron|Date=10 April 2008|Text=Not to split hair, but I saw many times as a 5 year asset. Why 7 years Dnc?}}

Revision as of 02:23, 10 April 2008

Discussion Forum Index --> Basic Tax Questions --> Depreciation of HVAC
Discussion Forum Index --> Tax Questions --> Depreciation of HVAC

Tiredoftaxes (talk|edits) said:

9 April 2008
I have a client who owns a s-corp and they have a warehouse like building which they use for their offices. They made two separate purchases during the year. First they bought a furnace and later on they bought an airconditioner unit, not a window unit. My question is what depreciable life have you used for a furnace and for an airconditioner?

JR1 (talk|edits) said:

April 9, 2008
Were the old ones broken?

Tiredoftaxes (talk|edits) said:

9 April 2008
The furnace was replaced but there never was any airconditioning.

Bjeter (talk|edits) said:

9 April 2008
The furnace and A/C are considered part of the building and will be depreciable over the appropriate life (27.5 or 39 yrs), unless it is special equipment to regulate a small environment within the building (such as a/c installed only to keep computer equipment in a consistent environment). You can try to get away with calling the furnace a repair, but to me that would depend on the cost of the furnace.

Tiredoftaxes (talk|edits) said:

9 April 2008
That is what I thought but it seemed silly that an a/c unit which probably only lasts 10-15 years would be part of the building.

JR1 (talk|edits) said:

April 10, 2008
You never answered the question about the furnace. Was it broken? Makes a big diff. Broken means the new one is a repair.

Bjeter (talk|edits) said:

10 April 2008
Doesn't matter what the useful life of the asset is or would be. It's only what Congress and the courts say that matters.

Dnc0716 (talk|edits) said:

10 April 2008
7 year asset no sec. 179 allowed though.

JR1 (talk|edits) said:

April 10, 2008
If it's a repair, you don't care. Immediate deduction.

Dnc0716 (talk|edits) said:

10 April 2008
You repair the original unit. If a new unit is purchased, then it is a capital asset with a 7 year life.

Foxttron (talk|edits) said:

10 April 2008
Not to split hair, but I saw many times as a 5 year asset. Why 7 years Dnc?
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