If you are entering this for your own personal residence, there is no place for you to enter depreciable siding. Instead, the cost for the siding is added to the basis of your personal residence to be used to determine your capital gains once you sell your house.
If this is for rental property, here is how you would enter this in this precise set of steps to report depreciable assets under the rental activity. TurboTax software will determine the depreciation for each asset.
- Down the left side of the screen, click on Federal.
- Down the left side of the screen, click on Wages & income.
- Scroll down to Rentals, Royalties, and Farm. Select Show more.
- Select Start / Revisit to the right of Rental Properties and Royalties.
- At the screen Your 2024 rentals and royalties summary, you are able to view any rental or royalty activity that has been created.
- Click Edit to the right of the rental activity.
- At the screen Here's rental property info, scroll down to Assets. Click Edit to the right.
- At the screen Your Property Assets, click Add an Asset.
- At the screen Describe This Asset, This is Residential Real Estate Property Click Continue.
- At the screen Tell Us a Little More About Your Rental Asset, select a category. This would be classified as Residential Rental Real Estate. Click Continue.
- At the screen Tell Us About This Rental Asset, enter the asset information. Call it Residential Siding and the cost, which includes installation and materials Click Continue.
- Don't list anything for the cost of the land but do list the day purchased.
- At the screen Tell Us More About This Rental Asset, select i purchased this asset. and that you used it 100% for business
- Enter the date that you started using the asset for business. Click Continue.
- At the screen Asset Summary, click Show Details to see the depreciation details. it will show that the asset is being depreciated over 27.5 years and then the amount of depreciation for the siding.
Once this information is added, a Form 4562 will be generated in your return to report the depreciation.
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