@scpanish you are posting as an "add-on" to someone else's thread. Continue to do so and chances are "HIGH" it will lead to confusion that will result in you being given the *wrong* information.
Bottom line is, your water heater and hardwood floors are entered the assets section. Period.
But for property improvements done between the time the last renter moved out and the time you sold it, just make the business use percentage ZERO, and no depreciation is taken on that asset.
"I put that stuff in as imrovements, selling price $1, used the date the house was sold, and reduced the sale price of the building by those little additional amounts. "
Nope. Flat out wrong. There's no way on earth you paid $1 for a water heater and new floors. That has an extremely high possibility of raising flags and getting you audited.
