Originally Posted by Lovisa:
I've read through many of Tom's articles and can't make heads or tails of how I go about depreciating the new HVAC I am having put on my house next week. Do I depreciate it over the 39 years or do I first deduct 50% of it, then depreciate the rest at the 39 years??? Basically, I don't know if a HVAC qualifies for the 50% bonus depreciation. Thanks in advance for any help!
The rules changed in 2018. Take the total cost of the HVAC and multiply by your time-space %. Then deduct this amount on your 2018 taxes. In 2018 there is a 100% bonus depreciation rule that says everything you buy (except for a home and addition to your home) can be deducted in one year, and doesn't have to be depreciated. This is a big deal!