Recently had a water heater die in my rental property and it had to be replaced with a new one.
Here are the specifics:
- Old water heater that was in the unit when I bought it.
- The property was occupied by tenants at the time it was replaced.
- During the replacement I also had the plumber fix two safety issues the home inspector identified related to the water heater (install a power/water cutoff at unit).
- The replacement and all the associated work in #3 totaled $1488
I'm fairly new at landlording and my Internet searches are turning up some conflicting advice. So the question is this....
Should the above described cost be expensed in the current year or depreciated/capitalized, and if the latter over what time period?