Are new energy effecient windows tax deductible in 2019.

General Landlording & Rental Properties
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Are new energy effecient windows tax deductible in 2019.

Winn MerwinPro Member
Rental Property Investor 路 Augusta, GA 路 Member since 2016 路 90 posts 路 32 votes

Hello BP, 

My wife and I are currently rehabbing a 4 unit property in Augusta, GA. We had not originally planned to replace 20 windows, but it looks like we need to. Is the cost of the windows tax deductible? Our CPA is going through the new tax code and seems to be having conflicting thoughts about this.

This is a long term buy and hold rental property for us if that makes a difference.

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Account Closed
Rental Property Investor 路 Canton, OH 路 Member since 2017 路 1k+ posts 路 1k+ votes
7y

@Winn Merwin

I'm curious on this too. My understanding is that it depends on whether the property is rented or vacant/being rehabbed. If rented, it's a tax deduction in the year the expense was occurred. If not rented, it's depreciated over time.

Not a CPA just posting what my thoughts are...I may be wrong :)

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  • Kenneth Mooney
    Rental Property Investor 路 Augusta, GA 路 Member since 2016 路 348 posts 路 171 votes
    7y

    @Winn Merwin not 100% sure but the windows would almost definitely be considered a capital expenditure meaning you could depreciate them.

    Not an answer to your question but there might be some rebates through GA Power that can help get the cost down (not that that is the issue).

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  • Account Closed
    Rental Property Investor 路 Canton, OH 路 Member since 2017 路 1k+ posts 路 1k+ votes
    7y

    @Winn Merwin

    I'm curious on this too. My understanding is that it depends on whether the property is rented or vacant/being rehabbed. If rented, it's a tax deduction in the year the expense was occurred. If not rented, it's depreciated over time.

    Not a CPA just posting what my thoughts are...I may be wrong :)

    2Reply
  • Jason D.
    Rental Property Investor 路 St. Petersburg, FL 路 Member since 2017 路 3k+ posts 路 4k+ votes
    7y

    @Winn Merwin as I understand it, if it's part of the rehab, it would probably be added to the basis of the property and depreciated.

    1Reply
  • Winn MerwinPro Member
    OP
    Rental Property Investor 路 Augusta, GA 路 Member since 2016 路 90 posts 路 32 votes
    7y

    @Kenneth Mooney 

    Great thought. Ill check with GA power.

    @Account Closed

    If that is the case, Ill rent it out with the promise of new windows, and install after a tenant has been placed. Thank you for the idea.

    @Jason D.

    That is the conclusion my CPA came too. Not that excited about it from that perspective. 

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  • Jason D.
    Rental Property Investor 路 St. Petersburg, FL 路 Member since 2017 路 3k+ posts 路 4k+ votes
    7y

    @Winn Merwin taxes are rarely exciting 馃榿

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