Rent house

[Bird Legs]

Client has a residential rental property and in 2006 he replaced the central a/c unit.
The new unit cost 4500. installed.
Am not able to think straight so am asking all of you. Is this 27.5 yr property?
Or can we use a shorter life to depreciate it over?
Thanks for all help in the past, present and future.

[solomon]

27.5

This is considered a structural component so 27.5 years.

[Bird Legs]

Old Wise One

Thank you very much. This is what I was thinking, however, my thinking ability is
shrinking.
Thanks again.

[fliszt]

Bird Legs, does this

apply to your situation? Read on down a little ways.



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Report on the Legislative and Oversight Activities of the Committee on Ways and Means during the 109th Congress

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Statement of Air Conditioning Contractors of America, Arlington, Virginia

The Air Conditioning Contractors of America (ACCA) is pleased to provide comments for the record in connection with the September 23, 2004 hearing of the Subcommittee on Select Revenue Measures of the House Committee on Ways and Means on “Select Tax Issues.” ACCA commends Chairman Jim McCrery (R-LA) and Ranking Member Michael McNulty (D-NY) for holding this important hearing to highlight tax issues from Members of Congress who do not sit on the House Ways and Means Committee.

ACCA represents the nearly 5,000 men and women who design, install and maintain heating, ventilation, air conditioning, and refrigeration (HVACR) systems across all 50 states. 75,000 employees in the HVACR industry are employed by ACCA member companies.

Currently, the federal tax code for the depreciation holding period for commercial HVACR equipment is 39 years. This is not beneficial to owners of commercial buildings because the equipment lifespan of properly maintained HVACR equipment is 15 to 20 years. As a result, commercial building owners have no incentive to replace older, less efficient equipment with newer, more energy efficient HVACR equipment because of the 39 year holding period. “The Cool and Efficient Buildings Act,” H.R. 3953 sponsored by Representative Peter Hoekstra (R-MI), would resolve this problem.

H.R. 3953 reduces the 39 year depreciation holding period to a realistic 15 year depreciation holding period for HVACR equipment. Because most HVACR equipment has an optimum lifespan of 15 to 20 years, H.R. 3953 provides a realistic recovery period, thereby providing an incentive to commercial building owners to replace older equipment with new equipment.

In addition to providing a realistic depreciation schedule, H.R. 3953 also encourages energy conservation. In the past 15 years there have been dramatic changes in HVACR technology, making the equipment manufactured today extremely energy efficient. The HVACR systems now being installed in America’s homes and businesses make obsolete many of the commercial heating and cooling systems in use today. Providing a financial incentive to building owners now would encourage them to upgrade to more energy efficient equipment instead of waiting until their obsolete equipment breaks down, which is the current practice today.

H.R. 3953 also provides the following benefits:

New equipment to better manage indoor air quality, providing healthier indoor environments, which leads to less worker absenteeism and greater productivity.
Higher efficiency equipment will greatly reduce carbon dioxide emissions.
Increasing the turnover of outdated equipment will produce additional manufacturing and service jobs, thus further stimulating the economy.
Passage of H.R. 3953, the “Cool and Efficient Buildings Act,” can help upgrade the nation’s HVACR equipment and promote energy efficiency and savings. We applaud Representative Peter Hoekstra, as well as original cosponsor Representative Stephanie-Tubbs Jones (D-OH), for sponsoring this legislation that creates jobs, provides healthier indoor environments and reduces carbon dioxide emissions. ACCA strongly urges the Subcommittee Members to consider this legislation that reduces the depreciation period of commercial HVACR equipment from 39 to a more realistic 15 years.

Thank you for the opportunity to submit this Statement for the Record

[gkaiseril]

Not Law Until Passed and Signed

Sounds like a statement for pending legislation. That means not passed into law. It sounds like the original is part of the original building. Just start a new line entry. If replaced again, expense unadjusted basis since the asset has been retired with no residual value.