Yes. Depreciation starts when you place property in service.. Renovations are usually 27.5 years but appliances and other minor items have shorter lives. So, the overall renovation will be given a useful life of 27.5years but you will need to take out cost for appliances because they have a shorter useful life. TurboTax will walk you through entering your depreciable item.
In other words, you may need to separate items with shorter useful life like appliances.
In TurboTax Online, report rental income and expense:
- Down the left side of the screen, click on Federal.
- At the top of the screen click on Wages & Income.
- Under Your income, scroll down to Rentals, royalties and Farm. Click Show more to the right.
- Click Edit / Add to the right of Rental Properties and Royalties.
- At the screen Your 2020 rentals and royalties summary, click on Edit to the right of the rental activity.
- At the screen Here's rental property info, scroll down to Assets (Depreciation) and click Edit to the right of the rental property.
TurboTax will ask questions and guide you through entering your rental property information and computing a depreciation expense.
How Long Do You Depreciate Appliances?
- Used and new appliances depreciate for up to 5 years.
- The purchase price of depreciating appliances includes the sales tax, delivery charges and setup fees.
- Rental property purchases do not qualify for section 179 accelerated depreciation
If you improve depreciable property, you must treat the improvement as separate depreciable property. Improvement means an addition to or partial replacement of property that is a betterment to the property, restores the property, or adapts it to a new or different use. See section 1.263(a)-3 of the regulations.
Link for more information: How to Depreciate Property
Just as you depreciate the cost of rental property over time, you must also depreciate the cost of renovations, remodeling and improvements over time -- typically 27.5 years. However, certain appliances, such as stoves, refrigerators, and washers and dryers have a shorter expected life span, and therefore can be depreciated over a shorter time period. Depreciation is a form of tax deduction. Essentially, depreciation provides a way to account for the theoretical loss of value through fair use, wear and tear and obsolescence over time. You deduct the full cost of a rental house over 27.5 years.
Generally, renovations can be depreciated over the same time period as the property to which they're attached, so renovations to rental houses and apartment buildings have a 27.5 year depreciation
@sun2sirius
For more information use this link: Residential Rental Proert
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