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Deductions & credits
An ADU (Additional Dwelling Unit) is a "Land Improvement".
If you place it in service as a rental unit, then it is also "Residential Rental Real Estate".
If placed into rental service, the total cost of the ADU is depreciated as a single asset - residential real property.
(The cost of materials and labor (plumbing, carpentry, electrical, etc.) are not entered separately).
March 14, 2021
3:55 PM