Business Expense - Replacing an AC System

[Ryan Murphy]

My wife and I are currently building a new house to become our primary residence, and then we'll then use our current primary residence as a rental property. However, I just found out that our current residence probably needs a new AC system. I'm thinking about waiting to have it replaced until after we move into the new home, and then counting it as an expense on a rental property that I could hopefully deduct on taxes. Does anyone know if that is allowed or have advice on how to handle it to maximize tax benefit?

[Soh Tanaka]

Even if you do so after you move, it needs to be capitalized, which means you can deduct the cost over 27.5 years. Check with your accountant though.