HVAC unit costing $4,000 has been added to a building that is rented and depreciation over 39 years. Should the HVAC be depreciated over 39 years or a different class life?
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How many HVAC units on/in the commercial building are there? -
Not sure for 2017 seems to follow building. If you look at 2018 hvac dep rules got changed.Comment
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if it was placed in service in 2017 for a commercial building it would be 39 years.Taxes after all are the dues that we pay for the privileges of membership in an organized society. - FDRComment
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The total number of units is important.
Take a look at Reg 1.263(a)(3)(j)(3) Example 20, where 2 rooftop HVAC units were replaced out of a total of 10 units. The replacement of 20% was not considered material and their replacement was not expected to materially increase the productivity, efficiency, strength, quality, or output of the HVAC system under paragraphs (j)(1)(iii) and (j)(2)(iv) of this section as compared to the condition of the system prior to the climate control problems.
In that example, you do not have to capitalize the 2 HVAC units.Comment
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