Deck demo and rebuild on rental

[zrqfu]

I have a single-family-home rental, that has been rented out for the past 10 years. In 2024, the wooden deck was in real bad shape. It could not be repaired. The wooden boards were badly rotted and warped and was a safety hazard.

I had the deck demolished and a new one rebuilt (same floor plan and shape).

How do I account for the expenses for this project in my taxes?

[AnnetteB6 · Accepted solution]

Add the cost of the deck rebuild as an Asset for depreciation under your Rental Income and Expenses section.  

It will be entered as Rental Real Estate Property and then Residential Rental Real Estate.  This will depreciate the deck as a component of the house.  The recovery period will be 27.5 years, the same length of time as the house.  Skip the entry asking about the cost of the land and enter the total cost of the rebuild with the date placed in service being the date the project was finished.