Depreciate a future tear down

[Ernie Schaal]

I have a very unique situation. I have 2 houses on the same parcel. I bought the property remodeled one house to rent. Tore the other house down and built a new one in its place.

Last year my tenant moved out and there were some relatively minor things I had to do to get it rentable. And a few things I wanted to do. The parquet floor was stained from cat urine and needed to be refinished anyway, so I did that myself. In the living room they had a window AC unit, but it didn't drain properly and damaged a good 4'x8' section of the hardwood as well as the subfloor. The walls were oak paneling and we're damaged as well. Replaced everything, tore out the 1960's insulation (rockwool not asbestos), drywalled, and replaced and refinished the floor. Then I spent the money and had central air installed as the furnace was already there. Now I don't have to worry about issues like that again and it's a little more appealing.

I knowt the A/C has to be depreciated, but what about the repairs? I saved a ton doing it myself but still put a decent chunk into it. I'm leaning towards that being depreciated as well. Thoughts?

Lastly, in the future 10 or so years down the line. The rental house will be torn down and my "dream home" will be built somewhere on the property. (As long as 1 house is under 1000 sq ft I can do it. My current house is 997.5). So im wondering what I'd do with the remaining years to be depreciated for a house that would no longer exist, but still owning the property.