Hello Community,
I need to capitalize the re-model cost of our condominium. The condo is held by an LLC and rented 80% of the year. So it's run as a rental business. The remodel was extensive, but it's unclear to me how to enter it in turbotax business so that it gets properly recorded and capitalized. Any advice would be appreciated.
Regards,
Andrew
Important: Are you using TurboTax Business to prepare a return (1065) for a multi-member LLC and is there personal use of the condo?
You would typically enter the remodel, assuming this was one project, in the Rental Real Estate Income section of TurboTax Business as an asset to be depreciated over 27.5 years.
Note that you will enter the cost of the remodel as Rental Real Estate Property.
If there was personal use, you will also need to enter the number of fair rental days and personal use days.
@eloisedaddy wrote:
I suppose I have to manually enter the asset for the balance sheet calculation. Correct?
Yes, assuming you are required to complete the balance sheet (see screenshot below) or simply want to complete it for your own purposes.
Important: Are you using TurboTax Business to prepare a return (1065) for a multi-member LLC and is there personal use of the condo?
You would typically enter the remodel, assuming this was one project, in the Rental Real Estate Income section of TurboTax Business as an asset to be depreciated over 27.5 years.
Note that you will enter the cost of the remodel as Rental Real Estate Property.
If there was personal use, you will also need to enter the number of fair rental days and personal use days.
Yes, using Turbotax Business. Took care of the personal use component in the %usage. It was 96% used for business last year. I did enter it as an asset to be depreciated. So it's in there that way. It completely throws off the balance sheet calculation though as it appear Turbotax is not not automatically updating the owner asset balance correctly to take account of the new asset. Is that typical? I suppose I have to manually enter the asset for the balance sheet calculation. Correct?
@eloisedaddy wrote:
I suppose I have to manually enter the asset for the balance sheet calculation. Correct?
Yes, assuming you are required to complete the balance sheet (see screenshot below) or simply want to complete it for your own purposes.