Rental Property purchase

What are the specific steps to enter the purchase cost of a rental I puchased on 7.1.19.  I can't seem to find where to enter the purchase price.  I entered the name of LLC and have gone through all of the expenses to the end and found no place to enter the purchase price.  I suspect it is in the depreciation section.  But each time I went in there the program kept asking me for improvements.

 

Investors & landlords

You are in the proper section.

 

Answer in the negative with respect to the improvements. Ultimately, you will arrive at a screen where you will select Rental Real Estate Property.

Investors & landlords

I answered to the negative and arrived at "describe this assets".  I selected "real estate property". The next page is asking me how would you categorize this asset?  The chooses are: Nonresidential real estate, qualified improvement property, and specified qualified improvements.   The best fit is nonresidential real estate.  However, this gives me depreciation over 39 years.  I'm pretty sure it should be MACRS 27.5 years.  Been stuck here for 90 minutes.

Investors & landlords

I selected specified qualified improvements.  This gave me the opportunity to make the following chooses "other asset type > describe large purchase > 100 Business use > Asset class 27.5 residential rental > straight line.  In my asset summary, it shows 27.5.  I can't see any other way to get to this so I'm going with this.  Does this seem reasonable?

Investors & landlords


@dmwest wrote:

I entered the name of LLC 

 


I'm wondering if you are in the wrong section.  Are you entering it as a "business", or as a rental property?

Investors & landlords


@AmeliesUncle wrote:

@dmwest wrote:

I entered the name of LLC 

 


I'm wondering if you are in the wrong section.  Are you entering it as a "business", or as a rental property?


Yes, it now actually sounds like @dmwest is entering this in the Business Income and Expenses section rather than the Rental Properties and Royalties section. 

 

@dmwest You need to enter this in the Rentals section.

View solution in original post

Investors & landlords

I was wondering the same, as a Single Member LLC I need to file my new rental property under Schedule C (self employed business) correct? 

My other rental property not under an LLC I have filed as Rental Property.

Investors & landlords


@Jolapp1 wrote:

I was wondering the same, as a Single Member LLC I need to file my new rental property under Schedule C (self employed business) correct? 

My other rental property not under an LLC I have filed as Rental Property.


 

 

No.  The Single Member LLC changes nothing for income tax purposes (assuming it has not filed an election to be taxed as a corporation). 

 

It is filed just as before, as a rental property (assuming you don't provide "services", such as maid service or meals to the tenants).