Where you classify the renovation costs will depend upon the specific type of improvement. IRS Publication 946 breaks down the asset classification and depreciation life in more detail. For example, a roof will have a longer life than a light fixture. I suggest referring to the following links for more guidance to help direct you based upon the type of improvements made.
How do I handle capital improvements and depreciation for my rental?
Rental Real Estate and Taxes
If you have the breakdown of each specific asset, it would be better as rental properties do have wear and tear. If you have to replace a light fixture, for example, it would make it easier to remove that asset from your books and add the new light fixture when the time comes to make that change.
@Ajurad028
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