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Is a Nest thermostat a capital improvement or personal property?
Hi all,
I just installed a $250 Nest thermostat in a unit.
Is that added to the cost basis, or can I deduct it as personal property?
Thanks!
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Is it a rental unit or your home? No deduction if your home. If rental...
Was it a repair to address a broken thermostat or just an upgrade? A repair is immediately deductible. An improvement may need to be depreciated, but new rules were enacted in 2017 that may make it 100%-depreciated in year 1.
Reference: https://www.nolo.com/legal-encyclopedia/50-bonus-depreciation-likely-extended-2014.html