I did minor remodelling to a kitchen and bathroom.
Doesn't matter how minor it is. If it "adds real value" to the property itself, and becomes "a material part of" the property, it's classified as Residential Rental Real Estate. period.
You'll enter your $1500 cost in the COST box, and ZERO in the "cost of land" box.
Residential rental real estate does not qualify for the SEC179 deduction. But with that low a cost you most certainly can take the Special Depreciation Allowance (SDA). That will allow you to depreciate up to the entire $1500 that first year all in one shot.
