In TurboTax Online, you are recording the capital improvement, payment recently made, as a depreciable asset.
Record the capital improvement as follows:
- At the screen Describe the asset, select Rental Real Estate Property. Continue.
- At the screen Tell us a little more about your rental asset, select Residential Rental Real Estate unless the capital improvement would qualify as Land improvements.
- At the screen Tell us about this rental asset, enter description, cost and date of the capital improvement.
- At the screen Tell us more about this rental asset, select I purchased this asset because you made a recent cash outlay for the capital improvement.
- Have you used this item 100% for this business since you acquired it? This question refers to the new capital improvement. Select Yes, I've always used this item 100% for the time for this business. Enter January 1, 2023 as the date.
- At the screen Asset Summary, the capital improvement should report 27.5 years to depreciate. A Land improvement would qualify for 15 years.
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