Do I enter depreciations under miscellaneous expenses
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Do I enter depreciations under miscellaneous expenses

 
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Level 15

Do I enter depreciations under miscellaneous expenses

What kind of depreciation--rental property, self-employed business equipment, employee job equipment, vehicle (employee or self-employed), etc.?
Depreciation for equipment is entered under the interview subtopic "Assets", not miscellaneous expenses.
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Do I enter depreciations under miscellaneous expenses

Renovations: drywall, tile, carpet, countertops, painted, dink’s, toilets, faucets....
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Do I enter depreciations under miscellaneous expenses

Thx
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Level 15

Do I enter depreciations under miscellaneous expenses

You have never said what you are involved in, so I'll assume you have rental property.   There is a difference between repair expenses and depreciable assets.    I'm going to ask someone familiar with rental properties to help you report your expenses for those items.  

@Carl  Are you able to help this user when you are next in the forum?  Thanks.
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Level 15

Do I enter depreciations under miscellaneous expenses

Basically @dawna1266 it's apparent you're new to this. But that's okay. It's not like you learn this stuff through osmosis. But do your best to learn it through the experience of others, as it's significantly cheaper by far, than learning it through your wallet. In the answer box below is information that I'm sure you will find helpful. Please read it all. THen if you have questions, the education provided by the below will enable you to ask more specific questions tailored to your specific situation.
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Level 15

Do I enter depreciations under miscellaneous expenses

Thanks @Carl  
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Do I enter depreciations under miscellaneous expenses

Thank you
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Level 15

Do I enter depreciations under miscellaneous expenses

            • Rental Property Dates & Numbers That Matter.

Date of Conversion - If this was your primary residence before, then this date is the day AFTER  you moved out.
In Service Date - This is the date a renter "could" have moved in. Usually, this date is the day you put the FOR RENT sign in the front yard.
Number of days Rented - the day count for this starts from the first day a renter "could" have moved in. That should be your "in service" date if you were asked for that. Vacant periods between renters count also PROVIDED you did not live in the house for one single day during said period of vacancy.
Days of Personal Use - This number will be a big fat ZERO. Read the screen. It's asking for the number of days you lived in the property AFTER you converted it to a rental. I seriously doubt (though it is possible) that you lived in the house (or space, if renting a part of your home) as your primary residence or 2nd home, after you converted it to a rental.
Business Use Percentage. 100%. I'll put that in words so there's no doubt I didn't make a typo here. One Hundred Percent. After you converted this property or space to rental use, it was one hundred percent business use. What you used it for prior to the date of conversion doesn't count.

      • RENTAL POPERTY ASSETS, MAINTENANCE/CLEANING/REPAIRS DEFINED

Property Improvement.

Property improvements are expenses you incur that add value to the property. Expenses for this are entered in the Assets/Depreciation section and depreciated over time. Property improvements can be done at any time after your initial purchase of the property. It does not matter if it was your residence or a rental at the time of the improvement. It still adds value to the property.

To be classified as a property improvement, two criteria must be met:

1) The improvement must become "a material part of" the property. For example, remodeling the bathroom, new cabinets or appliances in the kitchen. New carpet. Replacing that old Central Air unit.

2) The improvement must add "real" value to the property. In other words, when  the property is appraised by a qualified, certified, licensed property appraiser, he will appraise it at a higher value, than he would have without the improvements.

Cleaning & Maintenance

Those expenses incurred to maintain the rental property and it's assets in the useable condition the property and/or asset was designed and intended for. Routine cleaning and maintenance expenses are only deductible if they are incurred while the property is classified as a rental. Cleaning and maintenance expenses incurred in the process of preparing the property for rent are not deductible.

Repair

Those expenses incurred to return the property or it's assets to the same useable condition they were in, prior to the event that caused the property or asset to be unusable. Repair expenses incurred are only deductible if incurred while the property is classified as a rental. Repair costs incurred in the process of preparing the property for rent are not deductible.

Additional clarifications: Painting a room does not qualify as a property improvement. While the paint does become “a material part of” the property, from the perspective of a property appraiser, it doesn’t add “real value” to the property.

However, when you do something like convert the garage into a 3rd bedroom for example, making a  2 bedroom house into a 3 bedroom house adds “real value”. Of course, when you convert the garage to a bedroom, you’re going to paint it. But you will include the cost of painting as a part of the property improvement – not an expense separate from it.


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