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How do you enter building improvements as an expense?

In entering info for my farm business, I have building improvements. I answered yet to "did you make improvements to a building", , Next screen: I did qualify to claim them as expenses rather than assets. Next screen: describe the building (????). Did that. Next screen: any items not covered by your elections? (it acts like I'm all finished with the building improvements! It never asked for dollar amount or description of improvement!)  I answered yes to this question because I did have an asset to add but that took me to my list of assets and after I added the one new item to it, it went on to "other situations", carryovers, self-employment tax (which it couldn't have calculated accurately yet since I didn't enter this expense!!!)  etc. and never back to entering those improvements as an expense. I can go back and find the place to do it and assume I'm doing it correctly (not sure where on Schedule F list of expenses to even list a building improvement!) but it isn't logical that it doesn't take me to the right place in the interview process. 

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2 Replies

How do you enter building improvements as an expense?

If you are going to expense the improvements then do so in the expense section and stop going down the asset path that leads to nowhere.   

DawnC
Expert Alumni

How do you enter building improvements as an expense?

When items are purchased for a business, a decision is made whether it’s an expense that you deduct all of the cost now, or you deduct the cost over multiple years (depreciation).

There are two elections you can make. One is used to deduct items with a cost of $2,500 or less instead of depreciating. The second election deals with deducting improvements to business buildings.

 

These elections are available for Schedule C businesses, rentals, farms, and farm rentals.   The link explains that when you answer YES to the improvements being treated as expenses, TurboTax will add the election statement to your return.   You can enter those expenses as you did with the other expenses.   Since you have elected to expense rather than to depreciate, the expenses will get entered with all of the other expenses.   You can view your Schedule F prior to filing to ensure all expenses were captured.  

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