I have a rental townhome that I have rented since 2011. In my depreciation schedule, I have the cost of the house when it was placed in service. I have added landscaping, etc. But when I get to this section "residential real estate OR appliances, carpet, furniture OR land improvements" -I'm not sure which I am supposed to click. Real estate has the date I purchased, etc. That does not seem right. Land improvements discusses sidewalks, etc, but this is interior. Appliances, carpet and furniture seem only a subset of what I need to do. Any advise or directions for filling this out would be helpful.
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Any major renovation to a rental property should be classified as residential rental property and depreciated over 27.5 years.
Any major renovation to a rental property should be classified as residential rental property and depreciated over 27.5 years.
All major improvements to rental property that become "a physical part of" the primary structure (including landscaping) are classified as Residential Rental Real Estate" and depreciated over 27.5 years. Since the land is not a depreciable asset, for landscaping improvements that would mean your "COST" and "COST OF LAND" would be identical, and nothing would be depreciated on that specific asset. But it would add to the cost basis as it should.
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