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Level 2
posted Mar 11, 2025 1:05:25 PM

Do I enter a rental upgrade in "repairs" section under "common expenses" before I see the depreciation section?

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1 Best answer
Expert Alumni
Mar 11, 2025 1:13:15 PM

It depends on what you mean by a rental upgrade.  If you did a remodel of your rental property that will extend the useful life, this would be considered an asset and would be depreciated instead of expensed so it would not be entered in the Other Common Expenses section, instead it would be entered in the depreciation section. 

If you simply upgraded something like a faucet, this could be listed as a repair. 

What is rental depreciation and how does it differ from an expense?

3 Replies
Expert Alumni
Mar 11, 2025 1:13:15 PM

It depends on what you mean by a rental upgrade.  If you did a remodel of your rental property that will extend the useful life, this would be considered an asset and would be depreciated instead of expensed so it would not be entered in the Other Common Expenses section, instead it would be entered in the depreciation section. 

If you simply upgraded something like a faucet, this could be listed as a repair. 

What is rental depreciation and how does it differ from an expense?

Level 2
Mar 11, 2025 4:01:48 PM

I replaced the counter tops in the kitchen and one bathroom.  I "think" this would be considered an upgrade? 

 

If so you answered my question I would treat this as an asset and enter it in Other Common Expenses section. 

Expert Alumni
Mar 11, 2025 4:39:24 PM

Yes, counter tops are considered depreciable assets for tax reporting purposes. These wouldn't be considered expenses, so you would not enter these under other common expenses. Instead, these would be entered in a separate asset/depreciation category.

 

  1. Go to income or wages and income if using desktop
  2. Go Rental Properties and Royalties 
  3. When you select this, continue through the first two screens until you reach you rental and royal summary.  Here, select edit next to the rental property you already have listed.
  4. In a review of your rental property, select assets/depreciation.
  5. Next indicate you wish to go to your asset summary.
  6. Now you should be in your Property Asset Page, select add an asset
  7. Describing the asset, you would say it's Rental Real Estate Property
  8. Select Rental Real Estate property Again
  9. Next screen will have you enter a description of the asset, the cost, and the date you bought it. Don't enter anything for the cost of the land.
  10. Finish out the section.