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For tax purposes is replacement of broken heat pump in a rental unit considered an expense or improvement?

November 18th, 2008 4 Comments

Buckabinga asked: I have a condo on a golf course that I rent out mostly short term. The heat pump/AC broke down entirely in 2006. It was not repairable so I had to replace it with a new one for a cost of $4000. I cannot determine from the tax publications if [...]

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