Tax deductions for 2018 or 2019

[Joshua Lafferty]

I bought my first rental a couple months ago. I haven't had to put much money into it because I inherited a tenant. I want to replace the water heater before it stops working. Should I do it here in 2018 or would it be better to do in 2019, for tax purposes?

[Ashish Acharya]

Originally posted by @Joshua Lafferty:

I bought my first rental a couple months ago. I haven't had to put much money into it because I inherited a tenant. I want to replace the water heater before it stops working. Should I do it here in 2018 or would it be better to do in 2019, for tax purposes?

Water heater is smal enough deduction that is will not make huge difference. It would have mattered if you were going Change the tax bracket between years from the lowest to the highest or vice versa but highly unlikely. 

You don’t want to piss of your tenants though.

Change it now and take full deduction under de minimis safe harbor.