AnnetteB6
Employee Tax Expert

Investors & landlords

@wbarkho

 

As you stated in your question, the unit was remodeled when you purchased it.  Therefore, the purchase price of your unit includes the costs of the new items added when it was remodeled.  You do not break these out separately for depreciation since the cost of the cabinets, countertops, and appliances was already included in your total purchase price.  When you enter information for depreciating the rental unit itself, these items are also being depreciated as part of the rental unit.

 

Whenever these items are replaced in the future, you will depreciate them as separate assets tied to your rental property.

 

 

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