One thing you would check is how the remodeling expense was entered. When you have a rental property and you do repairs, maintenance, and improvements to the house, there are some things that you can expense on the same year, and some that will need to be depreciated and expensed overtime.
Things that you can usually expense on the year it happens are usually repairs and maintenance:
- Fixing a water leak
- Painting
- Repairing appliances
Things that will need to be depreciated over time are capital improvements:
- Remodeling a kitchen
- Getting new appliances
- Replacing a roof, siding, windows
- Installing a new furnace
If any of the things you did to the house would be considered capital improvements you should depreciate those expenses rather than expense the whole amount in one year. Doing this will reduce your current year loss, and adding depreciable assets to your rental property will also increase the cost basis of your property. Increasing the cost basis of your property will help when you decide to sell it.
If you would like more information about rental properties see the following TurboTax help articles:
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