I have the same question. I've made improvements to a building used strictly for business. The building is already being depreciated. Per the IRS (copied below right from the IRS), I can depreciate these improvements because it added value to the asset. Which one of the 3 options in Turbo Tax do you select under Business Assets (Computer, Video, Photo, etc / Tools, Machinery, Equipment / Intangibles, Other Property)? I would assume Intangibles, Other Property. If that is the case, would I then choose Land Improvements or Other Property?
Thanks!
From IRS:
How Do You Treat Repairs and
Improvements?
If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the
property, or adapts it to a new or different use. See section
1.263(a)-3 of the regulations.
You generally deduct the cost of repairing business
property in the same way as any other business expense.
However, if the cost is for a betterment to the property, to
restore the property, or to adapt the property to a new or
different use, you must treat it as an improvement and depreciate it.
Example. You repair a small section on one corner of
the roof of a rental house. You deduct the cost of the repair
as a rental expense. However, if you completely replace
the roof, the new roof is an improvement because it is a restoration of the building. You depreciate the cost of the
new roof.
Improvements to rented property. You can depreciate
permanent improvements you make to business property
you rent from someone else.
