Where in TurboTax Business do I put capitalized tenant improvements when it hasn't been put in use yet?

[Mika_N]

I am opening a new location for a restaurant and currently doing tenant improvements. Construction started May of 2021 but faced some delays due to supply shortgage and now construction is scheduled to finish in April 2022. 

Where do I put the capitalized tenant improvement related costs in TurboTax for Business since I can't depreciate it until restaurant is open for business?

Edit: We are an LLC with 3 members filing form 1065

[DaveF1006]

To clarify, is this for a Trust, A S-Corp, or a partnership?

[Mika_N]

This is for a partnership.

[PatriciaV · Accepted solution]

The expenses you have incurred so far are considered Construction (or Work) in Progress, that should be recorded as an asset on your Balance Sheet. If you're not required to include Schedule L (Balance Sheet) on your Form 1065 return, you would not enter this in TurboTax Business. Otherwise, add the total amount on Line 13 (Other Assets) on Schedule L.

As you said, you do not begin depreciating this asset until it is placed in service. Until that time, it has no effect on your taxable income.