I converted my primary residence to a rental property in 2018. Since then, I have reported all major improvements as expenses up until the current tax year (ie. carpeting AC/furnace, dryer and water heater). In addition to that, the rental property itself was never reported as an asset either.
My questions are...
- If I am even able to, what is required of me to begin reporting these items as (depreciating) assets? Or am I better off leaving as is and only report new assets as they are attained?
- Should the property be reported as an asset? I have no reason to believe it wouldn't be except that TurboTax doesn't require the information when filling out the Schedule E and doesn't seem as clear as it could be. Assuming it is, how are special depreciation and section 179 deductions applied?
