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Level 2
March 1, 2026
Solved

Depreciation for remodel of a rental house

  • March 1, 2026
  • 2 replies
  • 101 views

I spent over $22K on a remodel of my rental house. Since the house was vacant during the remodel process (for over 6 months), reducing my income, I'd like to reduce my depreciation for this year and spread it out over the following years. What should I put for 179 and SDA to reduce the depreciation applied to this year and add it to following years (without losing any total depreciation)?

Best answer by bjlevine

Based on my research, the way to have the lowest depreciation and expense allocated to 2025 is to not take any 179 or SDA. When qualified, 179 and SDA just turn part or all depreciation into ordinary expense to be written off in that year. That is what I needed to know, so I didn't take either. Turbotax considers furnishings as a 5 year depreciation.

2 replies

Mike9241
Level 15
Level 15
March 1, 2026

179 only applies to nonresidential real estate. SDA is also not vailable or if it is yoyou can electic out.

 

 

fordrpreciation purposes, it would seem the remodeling is part of the property, and thus you would use a 27.5 year life (residential real estate). in service date would be when the new lease starts. 

Mike9241
bjlevineAuthorAnswer
Level 2
March 1, 2026

Based on my research, the way to have the lowest depreciation and expense allocated to 2025 is to not take any 179 or SDA. When qualified, 179 and SDA just turn part or all depreciation into ordinary expense to be written off in that year. That is what I needed to know, so I didn't take either. Turbotax considers furnishings as a 5 year depreciation.