rental property bathroom remodel how to categorize asset for depreciation

[williambaldwin17]

we own a rental property; master bathroom was remodeled July 2021;

(1) asset description is "residential real estate"; next screen category of asset

(2)"residential rental real estate"; "appliances, carpet, furniture"; "land improvements"

Category=Residential Rental Real Estate"?

(3) We paid contractor $11,000 labor to remodel bath. Then we spent around $1300 on materials (toilet, shower, vanity, light fixture. Subfloor was rotten & had to be replaced (we bought lumber for that); contractor also put all new sheetrock in. Do we need to list each material (i.e. toilet, shower, vanity) as a separate asset?

(4) same scenario - September '21 remodeled attic (installed sheetrock & painted).  We paid contractor $9800 labor & bought materials.

[ZoltanB45]

With the bathroom is concerned, you would not separate the labor from the material cost. Combine it into one capitalized asset. 

The attic job could be considered Repair and Maintenance. If things are falling apart and paint is peeling, it would not have to be capitalized. You did not do anything major there but keeping it up to date.

[williambaldwin17]

What is sub category for bathroom?  attic - we framed & Sheetrock the entire attic; can be used as a den

[AmyC]

The remodeled areas are part of the house so Residential Real Estate is the first answer and the second. As for the price, lump all the parts together for the cost of the new bathroom and again for the attic space. You can depreciate it over 27.5 years or you can write off some/ all of it as desired with the sec 179 deduction.

Related:

• IRS Pub. 527 -  Residential Rental Property
• Real Estate Tax and Rental Property.