New AC Tax Deductible

[Pablo Pinasco]

Hello, I am pretty new to BP and I am doing my best to study as much as I can to get ready to invest in the near future. I currently own and live in a condo in Los Angeles, Sherman Oaks specifically, and it looks like I may need to buy a new AC unit soon. I was just wondering if a new AC unit would be considered a home improvement and be considered tax deductible? I also saw that some AC units actually get tax incentives and refunds. If anybody has any recent experience with this, I would greatly appreciate any advice. Especially any HVAC companies/contractors you've worked with in the past? Thanks in advance!

[Roy N.]

@Brandon Hall  could provide you with definitive answer, but I suspect things are not that much different for you than us.

If we are talking portable/window AC unit, then you could probably expense it - I would in Canada, particularly if it were only a few hundred dollars.

If you are talking central air or a mini-split unit which is fixed to the house, then it is a capital improvement and you will need to add it to your cost bases and depreciate it over time.