I own rental real estate and paid a plumber to fix a leaky water heater. It couldn’t be repaired and had to be replaced. How do I treat the cost of the new tank and the labor charge?

I own rental real estate and paid a plumber to fix a leaky water heater. It couldn't be repaired and had to be replaced. How do I treat the cost of the new tank and the labor charge?

The cost of the new tank is depreciated over a period fixed by the tax law (probably seven years in this case). Labor costs to install this capital asset are part of its cost; add the labor to the price of the tank and depreciate the total amount.