How to enter repipe on rental property

Forum|Forum|1 year ago
February 18, 2025
1 reply
1 view

We had a leak and had to do a repipe on our rental property which was around 18K after repipe and asbestos remediation, etc. Since over 2500, I must take it as an asset depreciation over time. When I try to set it up, the options for this 'asset' are:

1. residential rental real estate

2. Appliance, carpet, furntiture

3. Land improvements

None of those quite makes sense to me. Thinking number one, but I used that to put the rental property as an 'asset' two years ago. Recommendations on what to do please?

Thanks,

Adam

MindyB

Level 13

The best choice for this is option #1. It will be an asset in addition to the actual rental property. This would be considered a "major improvement" and thus will be depreciated in the same way as the rental, over 27.5 years.

Here's some information you may find helpful: Capital Improvements

psyadamAuthor

Level 5

Thank you. Under that option it asks for 'land value'. I filled out the true land value when I placed the home as an asset. I'm assuming this time I simply leave that as zero, as the pipes have no 'land value' per se. Can you please confirm?

Thanks,

Adam