If you claimed depreciation in prior tax years, you may need to add capital assets to your Schedule E rental property to continue that depreciation. The IRS requires you to take depreciation, even if you aren't able to claim a passive loss.
See this article for more info: How do I handle capital improvements and depreciation for my rental?
Since reporting rental activity can be complicated, you might consider upgrading to TurboTax Live. This online service provides step-by-step guidance from a tax expert whenever you need assistance, either over the phone or by screensharing.
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