No, that is not the correct way to do it for improvements in connection with renting a vacation home that you lease. The correct selection is Real Estate Property, the tangible and intangible as well as real property are described below.
-
Personal
Property: Tangible and Intangible property other than real property
- Tangible:
Anything you can see, feel or touch
- Intangible:
Anything that carries a value, but in and of it self is worthless (ex., a
dollar bill or a stock certificate)
- Real
Property: Land, building and building structural components
- You cannot choose the DeMinimis Safe Harbor for real property improvements when you don't own the property.
You can choose to depreciate the appliances under a shorter period by using these steps. Asset page, choose Rental Real Estate Property. On the next page, Tell us a little more about your rental asset, choose Appliances, Carpet, Furniture. You may also choose the DeMinimis Safe Harbor for these expenses (see below). After you answer the qualification questions TurboTax will tell you to list these expenses under the "Miscellaneous Expenses" category. Keep accurate records until you no longer have the rental activity.
Any other capital improvements to the building, including the remodeled bathroom must be depreciated under residential real property over 27.5 years.
If you loose the leasing rights, or you no longer have the right to sublease you can deduct the remaining balance as long as it is not converted to personal use (such as any appliances).
The TurboTax article below will explain the DeMinimis Safe Harbor.
https://ttlc.intuit.com/replies/4682171
