Adding capital expenditures for rental property

[Jim_dzg5zg]

In TT, I have $15k in capex for foundation work. How do I add that to the rental property? As a separate asset or as a change to the original basis? If it a separate asset, is that supposed to depreciate over 27.5 years or to fully depreciate at the same time as the house? 

[marctu]

It would be entered as a separate asset, and would also have a 27.5 year depreciation period as well.  

The steps would be as follows:

• Down the left side of the screen, click on Federal.
• Down the left side of the screen, click on Wages & income.
• Scroll down to Rentals, Royalties, and Farm.  Select Show more.
• Select Start / Revisit to the right of Rental Properties and Royalties.
• At the screen Your 2022 rentals and royalties summary, you are able to view any rental or royalty activity that has been created.
• Click Edit to the right of the rental activity.
• At the screen Here's rental property info, scroll down to Assets.  Click Edit to the right.
• At the screen Your Property Assets, click Add an Asset.
• At the screen Describe This Asset, select the asset option.  Click Continue.
• At the screen Tell Us a Little More About Your Rental Asset, select a category.  Click Continue.
• At the screen Tell Us About This Rental Asset, enter the asset information.  Click Continue.
• At the screen Tell Us More About This Rental Asset, select i purchased this asset.
• Enter the date that you started using the asset for business.  Click Continue.
• At the screen Asset Summary, click Show Details to see the depreciation details.

Thank you for the opportunity to answer your questions @Jim_dzg5zg 

All the best,

Marc T.

TurboTax Live Tax Expert