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Updated over 5 years ago on . Most recent reply

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Jon Schwartz
  • Realtor
  • Los Angeles, CA
1,151
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Is a Nest thermostat a capital improvement or personal property?

Jon Schwartz
  • Realtor
  • Los Angeles, CA
Posted

Hi all,

I just installed a $250 Nest thermostat in a unit.

Is that added to the cost basis, or can I deduct it as personal property?

Thanks!

Most Popular Reply

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James Mc Ree
  • Rental Property Investor
  • Malvern, PA
804
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James Mc Ree
  • Rental Property Investor
  • Malvern, PA
Replied

Is it a rental unit or your home?  No deduction if your home.  If rental...

Was it a repair to address a broken thermostat or just an upgrade?  A repair is immediately deductible.  An improvement may need to be depreciated, but new rules were enacted in 2017 that may make it 100%-depreciated in year 1.

Reference: https://www.nolo.com/legal-encyclopedia/50-bonus-depreciation-likely-extended-2014.html

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