What is the process in TurboTax desktop for entering improvements made to a rental property so that they can be depreciated? It seems I may be on the right page under "Your Property Assets", but I'm not sure how to fill out the details if I add it all as one asset for the year. Was the asset "purchased"? What would be the "placed in service" date if the renovation took a few months while the unit was vacant?
Thanks!
You are in the right place in the program.
As you go through the questions to add the Asset, choose Rental Real Estate Property and then Residential Rental Real Estate because the improvements are a component of the property itself. Add any description that makes sense for the work that was done. For example, 'kitchen remodel' or something similar.
The cost will be the total cost of the project, with no land cost associated with it. The date purchased or acquired will be the date that the project was finished. Then on the next page, you will indicate that the Asset was purchased and enter the date placed in service again.
You are in the right place in the program.
As you go through the questions to add the Asset, choose Rental Real Estate Property and then Residential Rental Real Estate because the improvements are a component of the property itself. Add any description that makes sense for the work that was done. For example, 'kitchen remodel' or something similar.
The cost will be the total cost of the project, with no land cost associated with it. The date purchased or acquired will be the date that the project was finished. Then on the next page, you will indicate that the Asset was purchased and enter the date placed in service again.