Rental property HVAC and roof replacement

JoeSC Member Posts: 1 Newcomer
edited January 15 in Credits/Deductions

Hello, I own a rental property and incurred expenses for replacing the HVAC system and the roof this year. I'm wondering which tax categories I can use to claim deductions for these two replacements?


  • KeriC
    KeriC FreeTaxUSA Agent Posts: 93

    Improvements such as roofing and an HVAC system are considered capital improvements on your property and the cost of them are typically depreciated over a certain number of years. You will want to report them as rental assets when filing your tax return.

    If your rental property is not residential, these improvements may qualify for Section 179, which would allow you to deduct the full cost on your 2023 return and not need to depreciate it over many years. The following links may provide some additional helpful information.

    Rental Depreciation

    How to Depreciate Property

    Residential Rental Property