« previous next »
Pages: 1

Author Topic: Immediate write-off or amortized over a long period  (Read 639 times)

Catbert

  • Magnum Stache
  • ******
  • Posts: 3328
  • Location: Southern California
Immediate write-off or amortized over a long period
« on: December 10, 2022, 11:30:58 AM »
I need to replace the entire HVAC system (furnish, AC, duct work) in a rental for 20K+.  Can I deduct this from rental income in the year I pay it?  I suspect I'm going to have to amortize over a long period. 

If I can deduct it all this year it'll take my taxable income from the rental down to zero and I'll have 9K room to do more Roth conversions.
Logged

GilesMM

  • Handlebar Stache
  • *****
  • Posts: 1557
  • Location: PNW
Re: Immediate write-off or amortized over a long period
« Reply #1 on: December 10, 2022, 11:44:51 AM »
It is a capital improvement with a long expected service life which you will add to your ongoing depreciation.
Logged

Catbert

  • Magnum Stache
  • ******
  • Posts: 3328
  • Location: Southern California
Re: Immediate write-off or amortized over a long period
« Reply #2 on: December 10, 2022, 03:56:24 PM »
Thanks, Giles.  That's what I feared.
Logged

sonofsven

  • Handlebar Stache
  • *****
  • Posts: 2056
Re: Immediate write-off or amortized over a long period
« Reply #3 on: December 12, 2022, 08:01:33 AM »
You should research section 179 depreciation, you might be able to write off the entire purchase in one year.
Logged

daverobev

  • Magnum Stache
  • ******
  • Posts: 3964
  • Location: France
Re: Immediate write-off or amortized over a long period
« Reply #4 on: December 13, 2022, 03:09:44 AM »
Is it a replacement or an upgrade? IIRC if it is a straight replacement you can write it off.
Logged
Pages: 1
« previous next »
 

Wow, a phone plan for fifteen bucks!