After an unseasonably hot summer, Willow received a call from her tenant that the AC was no longer working on the rental property she owned.  After calling out the repair service, it was determined that she needed a new HVAC unit.  Willow placed the order for the new unit on October 25, 2022.  It was on back order and could not be delivered to the rental property until December 22, 2022.  Because of the holiday, it was not installed until January 6, 2023.   On which date would the HVAC unit be considered “placed in service” for depreciation purposes?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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After an unseasonably hot summer, Willow received a call from her tenant that the AC was no longer working on the rental property she owned.  After calling out the repair service, it was determined that she needed a new HVAC unit.  Willow placed the order for the new unit on October 25, 2022.  It was on back order and could not be delivered to the rental property until December 22, 2022.  Because of the holiday, it was not installed until January 6, 2023.

 

On which date would the HVAC unit be considered “placed in service” for depreciation purposes? 

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