Is This a Repair?

[suehelen]

This is my first post here!

We purchased a new furnace and air conditioning unit this fall. Is this considered a repair? Or is it depreciated?

Thank you!!

[Michael]

Welcome to the Daycare.com Forum! I've upgraded your status. You can post freely now.

[TomCopeland]

Repair?

This is my first post here!

We purchased a new furnace and air conditioning unit this fall. Is this considered a repair? Or is it depreciated?

Thank you!!

This is a home improvement and must be depreciated over 39 years.

[suehelen]

Okay, I get that it has to be depreciated, but 39 years?

[Blackcat31]

Okay, I get that it has to be depreciated, but 39 years?

I think the general rule for residential non-real estate property is 39 years.

[suehelen]

It's a furnace, not a house. I understand the rule and everything but 39 years seems a bit long for a furnace.

[TomCopeland]

Home improvements

It's a furnace, not a house. I understand the rule and everything but 39 years seems a bit long for a furnace.

It is long, however the rule for home improvements is 39 years. If your furnace wears out before 39 years, you can deduct all the remaining years in the year it wears out.

[suehelen]

yep. Thanks Tom.