If the major repairs are improvements, you must capitalize (depreciate) any expense
you pay to improve your rental property. See instructions below on how to enter.
An expense is for an improvement if it:
- Results in
a betterment to your property.
- Restores your
property.
- Or adapts your property to a new or
different use.
A rental expense is an expense that must be both ordinary and
necessary. Their useful life is generally less than one year. Rental expenses are deducted in the current year. For example, light bulbs, paint, furnace air filters. See instructions below on how to enter.
Assets
have a useful life of more than
one year and must be depreciated over their useful life. For example, furnace, flooring, windows.
Some assets may be deducted
in the current year, depending on current tax law.
How to enter income and expenses from a rental property:
- With your return open in TurboTax, search for the word rentals in the search box.
- Click Jump to rentals in the search result.
- Answer Yes to the question Did you have any rental or royalty income and expenses?
- Follow the on-screen instructions as you proceed through the rental and royalties section.
- We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.)
- Eventually, you'll come to the Rental Summary screen which is where you enter your:
- Rental income
- Rental expenses
- Capital assets and depreciation
- Vehicle expenses
Additional information:
Where do I enter income and expenses from a rental property?
What kinds of rental property expenses can I deduct?
