Asset (HVAC) taken out of service before fully depreciated

[David V.]

Hi all,

Just curious about what to do for my AC/Heat Pump that I purchased 10 years ago and depreciated over 27.5 years that i needed to replace this year.  Am i able to expense the remaining undepreciated amount during the year i replaced it.  Or am i able to continue to depreciate over it over the remaining life?  Or i do nothing - no more deductions for this asset.  

Regards 

[Ashish Acharya]

Yes you can write off the adjusted basis (original basis less accumulated basis).