I spent $24K on August 2016 to remodel a rental house. Examples - painting inside & outside $7200; new carpet $3400; new counter tops in every bathroom $4400; new garage door $1100; new appliances $1200; etc
Here are my 2 questions - For 2016 tax return, can I combine all those improvements as one item in Turbo Tax - "major improvement" with 27.5 yrs (because of new counter tops). Or, IRS or Turbo Tax require me to report each improvement separately with separate depreciation years (gosh, I hate to think about how many 4562 depreciation forms I will have). Frankly, I do not mind taking slower depreciation (27.5 yrs) if I can combine all the improvements together with ONE 4562 form!
My 2nd question is - I may or may not sell this rental house in 2017. If I sell the house before August 2017 (less than one year after I made all these improvements), does it mean I can continue to depreciate these improvements up to August 2017. I think Form 4797 will recapture these depreciated amounts as ordinary income, not getting capital gain treatment.
Thank you in advance for your answers.
