The depreciable life for HVAC systems typically depends on the type of building and the tax rules in the jurisdiction where the equipment is installed. In the United States, the Internal Revenue Service (IRS) provides guidance on the depreciable life of HVAC systems for tax purposes.
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Commercial Buildings:
- HVAC systems in commercial properties typically have a depreciable life of 39 years under the Modified Accelerated Cost Recovery System (MACRS), which is the standard for commercial real estate.
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Residential Buildings:
- For residential rental properties, HVAC systems generally have a depreciable life of 27.5 years under MACRS.
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Bonus Depreciation (Section 179):
- Recent tax law changes, such as the Tax Cuts and Jobs Act of 2017, allow certain HVAC systems to qualify for 100% bonus depreciation in the year of purchase under Section 179. This applies to HVAC improvements in both commercial and residential rental properties, but specific qualifications must be met.
The actual depreciable life and eligibility for deductions like Section 179 or bonus depreciation can vary, so it’s always a good idea to consult a tax advisor for accurate guidance tailored to your situation
Note : This is not Tax advise, please consult a professional