I repiped my rental home this year. This is an improvement. Using Turbo I note no place to specifically report an improvement without setting up another 27.5 year asset. However, I can do is the line for furnishings etc. Its for 5 years and reports 80% depreciation for the first year. Form what I have read improvements in the interior of the home would qualify but the schedule(number of years) were generally missing from these articles. So I'd just like a check. First is this cost subject to the bonus deprecation rules? And if so do I use the Furnishing line in turbo to claim it to get the 80% and the 5 year depreciation?
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Yes, a major improvement like re-piping your rental home would fall under the 'real estate' category and be depreciated at 27.5 years, like the home itself.
For tax purposes, there are six general categories of non-real estate assets. Each has a designated number of years over which assets in that category can be depreciated. Here are the most common ones:
Here's more detailed info on handling Capital Improvements for your rental property and Depreciation of Business Assets.
I read two articles on Bonus Depreciation under the TCJA Tax Cut And Jobs Act and got the impression improvements would fall under it. Since this was an improvement to the interior of the house I thought it would be covered. Thanks for your input.
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