I have a single-family home that I 100% rent out. last year I spent $4,000 on a new furnace, and $4,200 on a new sewer line. Since these are each over $2,500 I was told they count as a "capital improvement." I'm trying to enter this into turbo tax and don't see capital improvement. I DO see "Rental Asset" that sounds similar. So I click on that and then I have 3 categories of rental assets to choose from:
(1) Residential Rental Real Estate assets
(2) Appliances, Carpet, Furniture
(3) Land Improvements
So I just picked (2) Appliances, Carpet, Furniture. And then it depreciated the cost over 5 years.
did I categorize that correctly?
Also I'm OK with depreciating it over 5years, but when I did a google search asking about how many years to depreciate a furnace and sewer line, and it said it was more than 5 years. But I don't see how to change the number of years.
