Thank you. Knowing that the project cost exceed the 2% of unadjusted basis ($5500) or 10k, (rental portion or project amounted to $7900 with additional repair expenses) I have to enter as an asset. When I choose Real Estate Property, it can be "land improvements", "real estate property", or "appliances, carpet, furniture". The Land improvements option gives a special election, the real estate property gives nothing but requires me to enter a physical address of property acquired, and the appliances etc. option gives me a Section 179 allowance. Somewhere in the murky IRS rules I saw that there is a Section 179D rule for green building improvements? I figured appliances, carpet etc is the closest as it is a material item added to the building? I wonder how insulation is categorized for this approach.
