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Updated over 9 years ago on . Most recent reply presented by

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Bienes Raices
  • Orlando, FL
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Water heater -- depreciate, or treat as a repair?

Bienes Raices
  • Orlando, FL
Posted

I had a new water heater installed in the rental (before I placed the rental in service, if that matters). Do I have to depreciate the water heater like I would a kitchen appliance, or is it okay to treat it as a repair and add it to the property's basis? Thanks.

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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
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Steven Hamilton II
  • Accountant, Enrolled Agent
  • Grayslake, IL
Replied

Bienes,

You would add this into the cost of the whole house to be depreicated.

ANY and ALL things done before the property is placed in service will be depreciated and NEVER expensed as a repair.

-Steven the Tax Guy

Your guide to IRS laws, rules and regulations.

  • Steven Hamilton II
  • [email protected]
  • (224) 381-2660
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