Depreciation for rental renovation

[ml12]

I purchased a rental property in 1989 so it is fully depreciated. I spent several hundred thousand dollars over the last two years gutting and renovating it. I don't seem to be able to add those improvements to my existing asset. Any help appreciated.

[ThomasM125]

You would set those up as a new asset, called "Improvements" or something similar. You can't add it to the cost of the property you already entered and depreciated. You would choose the Rental Real Estate Property option and then Residential Rental Real Estate if it is a residential property.

[Carl]

Basically, you will not touch the existing assets in the Assets/Depreciation section. You just click the "Add Another Asset" button and enter your property improvements there. I am also assuming the property was rented out at some point "after" the work was done.

[ml12]

Thank you.  Can I list it as a lump sum and if so, how do you specify the date purchased/acquired (as the reno started in 2020 and ended in 2021).

[Carl]

Can I list it as a lump sum 

If all the new assets were placed in service on the same date, you most certainly can.

if so, how do you specify the date purchased/acquired (as the reno started in 2020 and ended in 2021).

Any date the same as or before the in service date is fine. The IRS doesn't care when you purchased it per-se (on a new asset). What matters for depreciation is the date the asset was placed in service, as that's the date depreciation begins, regardless of the purchase/acquisition date.

[Hal_Al]

Q.  I spent several hundred thousand dollars over the last two years gutting and renovating it. Can I list it as a lump sum?

A. Yes, can and should. That assumes all the renovations were building improvements and will share the same 27.5 year depreciation schedule. 

As Carl, said the deprecation start date is the date, you placed the new asset "in service" (the date it was ready to be rented again, not necessarily the date it was actually rented); essentially when all the construction was completed.