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Deductions & credits
For residential rental property, it's added to the cost basis. To do that, enter the assessment as a separate asset in the assets/depreciation section. Weather it gets classified as a property improvement that's depreciated over 27.5 years, or a land improvement that gets depreciated over 15 years (or not depreciated at all) depends on the specifics of what the assessment was for.
‎April 25, 2022
11:56 AM