Hello and Thank you for the quick response.
I am working on Turbo Tax Premier desktop version on a Mac. I have 1 large house, which I expanded and remodeled in 2025. Then on the same lot, I built a separate new garage and apartment unit. I understand that this would be listed as a New Asset.
The garage/apartment was begun in 3/2025 and completed in November 2025. I think this is 27.5 year property but the cost seg statement shows it as 39year property so I am following up on that issue.
The reports that I have are:
New Garage/Apt
Main House Addition
Main House Improvements / Removal (?)
Original House/Disposition (Building Cost $779,425.72, Disposition Cost $536,094.07, New Basis after Disposition $243,331.65)
Shed - To Land. ($40,574.28)
The Cost study company is going to do the Form 3115 for me.
Currently, my property is in Turbo Tax as Residential Rental Real Estate.
From Form 4562:
Date in service 7/26/2022, cost net of land $820,000, Land $150,000, Bus. Use 79.41%. Section 179 '0', Special Depreciation Allowance '0' , Depreciable Basis $651,162.,Prior Depreciation (thru 12/31/2024) $66,820
I don't understand the references to 'Disposition' and 'Removal' and Shed - to Land
How do these figures get incorporated/updated into the Asset values on my return?
Note: we did have a large outbuilding that was demolished and the Garage/Apt was built in that area. Does that increase the amount that should be used as 'Land', bringing the total to $190,574.28?
I really appreciate your detailed instructions so far.
Thank you
