You don't say if you're using the online version of TurboTax 2019, or the Desktop version. As a first time landlord I ***HIGHLY*** recommend the CD/Desktop version that you physically install on your computer. It's much more user-friendly, easier to navigate and has "forms mode" which can be quite helpful in some instances for a new landlord. That "forms mode" it just flat out not available with the online version.
Question 1: What should my date placed in service be: August or November? I selected November.
Since this was purchased as investment property (rental property is a type of investment) it's in service date is the date you closed on the sale. Period.
Question 2: In the initial property details, I'm asked "Any property improvements made?" There's three fields: remodeling, room additions, and special tax assessments. Since I did remodeling, would I enter those costs I incurred between September and November? "Remodeling" is not defined, so what gets captured here: improvements or both improvements and repairs? Further, are these all my "remodeling" expenses made prior to the date entered into service?
Your property improvements are entered as a physically separate asset in the Assets/Depreciation section. The in service date for the property improvement will be one day after that property improvement was completed and it was "available" for use by a tenant.
I suggest that you answer "NO" to the question asking if any property improvements were made. Then you personally will enter your property improvements on your own as a physically separate asset, in the assets/depreciation section of the program, when you get to that point in the program.
Now I can understand your confusion. As a first time landlord the program is not as user-friendly as it could be for your specific and explicit scenario. But I'll be more than happy to help as you get this set up. Having everything absolutely spot on perfect in that first year is not a choice - it's a must. Even the tiniest of mistakes will grow exponentially over time. Then when you catch the error years down the road, the cost of fixing it *will* be expensive.
But don't let this scare you. It really is simple. It's kinda like riding a bike. When you started learning you just "knew" you'd never get it. But at this point in your life, you have absolutely no clue of what it's like to "not" be able to ride a bike. You just can't relate because it's been so long. You'll get to that same point with rental property stuff in 1-2 years of dealing with it yourself on taxes.
Do not let the below information I"m providing overwhelm you. It's information that answers questions that I know you will have as you work this through. You just don't know you need to ask those questions yet. 🙂 If you have more questions or need additional clarification, just post back here and I'm more than happy to help out. Been landlording myself for almost 30 years now.
