HVAC Replacement Tax Deduction

[Kristen Descant]

This year I replaced two HVAC systems. I know this is tax deductible, but I'm wondering if I would claim the entire deduction on my 2022 taxes or is this something I spread out over a few years?

[Sean O'Keefe]

@Cindy Bedtor and @Gordon Cai Depreciation of a new HVAC unit is over 27.5 years (39 years for commercial property or STR). Reference: Publication 527 (2022), Residential Rental Property - IRS Table 2-1

Even if the investment property only has "15 years of depreciation in a home left" you are still required to depreciate the new HVAC unit over 27.5 years or 39 years depending on the investment property type. It's unlikely the house is going to disappear after the 15-year depreciation period is up. As a result, the new HVAC will continue to depreciate even if the house is fully depreciated.