Swamp cooler depreciation
jw
evaporative coolers (swamp coolers).
I have installed one for my office. The unit is on the
roof and the air blows in through a hole in the roof.
It will probably last 8 to 10 years.
I can't figure out which class and recovery period
this falls into.
Any southwest people know the answer to this one?
Thanks.
John
Albuquerque New Mexico
--
Reply to newsgroup or
jw1...@earthlink.net
<< -------------------------------------------------- >>
<< The Charter and the Guidelines for Posting to this >>
<< newsgroup are at www.Misc-Taxes-Moderated.com >>
<< -------------------------------------------------- >>
Bill B.
It is depreciated as at the same rate as real estate.
If it is a non residential building it would be 39
year property. You would be able to expense any
remaining basis when you replace the unit.
Helen P. OPlanick EA
> evaporative coolers (swamp coolers).
Those of us that have lived in the southwest also know
why they are called swamp coolers, ever look into one of
those things? UGH.
> It will probably last 8 to 10 years.
>
> I can't figure out which class and recovery period
> this falls into.
I would take a 7 yr period on it and I think you would
be safe.
Helen, EA in PA
Director, NAEA; Member of The Tax Gang
President, PA Society of Enrolled Agents
Paul A. Thomas
> Those of us who live in the dry southwest can use
> evaporative coolers (swamp coolers).
>
> I have installed one for my office. The unit is on the
> roof and the air blows in through a hole in the roof.
>
> It will probably last 8 to 10 years.
>
> I can't figure out which class and recovery period
> this falls into.
>
> Any southwest people know the answer to this one?
Well, I'm not from the southwest, but I do have a client
with a swamp cooler (although it's not attached to the
building) we are depreciating it over 7 years.
--
Paul A. Thomas, CPA
Athens, Georgia
tax...@negia.net
Helen P. OPlanick EA
> It is depreciated as at the same rate as real estate.
> If it is a non residential building it would be 39
> year property. You would be able to expense any
> remaining basis when you replace the unit.
I do not agree. Swamp coolers are like window air
conditioners.
Helen, EA in PA
Director, NAEA; Member of The Tax Gang
President, PA Society of Enrolled Agents
<< -------------------------------------------------- >>
Bill B.
an evaporative air conditioning system used in commercial
buildings. In layman terms it would be a central air
conditioning system.
I copied the definition of a structural component from IRS
publication 946:
Structural components:
Parts that together form an entire structure, such as a
building. The term includes those parts of a building such
as walls, parti- tions, floors, and ceilings, as well as any
permanent coverings such as paneling or tiling, windows and
doors, and all components of a central air conditioning or
heating system including motors, compressors, pipes and
ducts. It also includes plumbing fixtures such as sinks,
bathtubs, electrical wiring and lighting fixtures, and other
parts that form the structure.
Regulation section 1.48-1(e) is repeatedly refered to in the
CLADR tables as excluding structural components from being
classified as personal property and depreciated as 3, 5, or
7 year property.
Helen P. OPlanick EA
> an evaporative air conditioning system used in commercial
> buildings. In layman terms it would be a central air
> conditioning system.
It is only central to the room it is attached to. Trust me.
While it may seem whole house or whole office, it is as good
and no better than a window unit.
Helen, EA in PA
Director, NAEA; Member of The Tax Gang
President, PA Society of Enrolled Agents
<< -------------------------------------------------- >>
Christopher Green
> As I understand the definition of the swamp cooler. It is
> an evaporative air conditioning system used in commercial
> buildings. In layman terms it would be a central air
> conditioning system.
There are swamp coolers that are an integral part of the
building, making them part of the central HVAC, and swamp
coolers that are more like a window air conditioner. There
are even portable swamp coolers. It's not entirely clear
from the OP's post just what he has, but it sounds like one
of the built-in kind. If so, I'm inclined to agree with you
that it's structural and should be depreciated as a
component of the structure. This would be an unfortunate
result, because the depreciation would be over a much longer
period than the actual useful life of the unit; thus it
remains worth looking for a well-founded justification that
the unit is more like equipment or a fixture.
--
Chris Green
Herb Smith
> As I understand the definition of the swamp cooler. It is
> an evaporative air conditioning system used in commercial
> buildings. In layman terms it would be a central air
> conditioning system.
>
> I copied the definition of a structural component from IRS
> publication 946:
>
> Structural components:
>
> Parts that together form an entire structure, such as a
> building. The term includes those parts of a building such
> as walls, parti- tions, floors, and ceilings, as well as any
> permanent coverings such as paneling or tiling, windows and
> doors, and all components of a central air conditioning or
> heating system including motors, compressors, pipes and
> ducts. It also includes plumbing fixtures such as sinks,
> bathtubs, electrical wiring and lighting fixtures, and other
> parts that form the structure.
>
> Regulation section 1.48-1(e) is repeatedly refered to in the
> CLADR tables as excluding structural components from being
> classified as personal property and depreciated as 3, 5, or
> 7 year property.
I disagree also. While the swamp cooler MAY be part of a
"central air conditioner system" in a commercial building,
that does not seem to fit the facts of this case. I live in
a hot, dry climate (since 1964) and swamp coolers were a
common appliance at that time. Usually, they were mounted in
a window or on a roof, but not to a piped distribution
system. A 39-year depreciation period would be ludicrous.
HW "Skip" Weldon
>> an evaporative air conditioning system used in commercial
>> buildings. In layman terms it would be a central air
>> conditioning system.
> I disagree also. While the swamp cooler MAY be part of a
> "central air conditioner system" in a commercial building,
> that does not seem to fit the facts of this case. I live in
> a hot, dry climate (since 1964) and swamp coolers were a
> common appliance at that time. Usually, they were mounted in
> a window or on a roof, but not to a piped distribution
> system. A 39-year depreciation period would be ludicrous.
We lived in Albuquerque during the 70s, and all swamp
coolers in our residential neighborhood were similar to
our's - either on the roof or on a concrete slab in the
backyard. In either event they were connected to a central
duct system.
While I never saw a swamp cooler "window unit", I would
treat it in the same manner as an air conditioner window
unit. It follows that I would also treat central units the
same regardless of being called swamp cooler or a/c unit.
If anyone has a cite differentiating between the two, please
post it here.
-HW "Skip" Weldon
Columbia, SC
Nan Eklund
were 5 year property back in the 80s and 7 year now. They
may be on cement bases but usually cool via a window (with
support to reach it). The ones on roofs are just like the
window ones except that the entry is handled differently.
Nan, EA in LA