Special assessment on condo siding and windows

[bdabda]

I own a rental condo. The HOA charged owners $14,000 in 2022 as a first payment on a special assessment for improvements -- cement siding, new windows and doors. We will be assessed close to $6000 in 2023 and for several more years to pay off the same project. On reviewing several similar posts, I assume I need to depreciate vs deduct, but am having difficulty figuring out exactly where and how to enter in TT. Do I "Add an Asset" and describe as "siding/windows/doors" and then as "Rental Real Estate Property" and then as "Residential Rental Real Estate"?

OR is a Section 179 deduction available and preferable?

Thank you very much for any guidance.

[MinhT1 · Accepted solution]

Yes, you are correct.

The improvements must be added as an asset to be depreciated over 27.5 years.

Section 179 deductions cannot be used for residential rental property.

[Opus 17]

In this case, you enter the improvement one time, when the improvement is "placed in service" (installed), listing the entire cost to you, even if you haven't paid the full amount yet.