If a rental property is already fully depreciated, and I then have a capital improvement, can this be reported as the start of a new cost basis ?
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Yes, you can enter the capital improvement as a new asset and depreciate it over 27.5 years.
Thank you for the fast response ! Can I also ask how best to field the TT dialogue in reporting asset depreciation, to indicate a rental property which was rented out until 2008; and thereafter not in service (ie not advertised as available and no income reported) and converted for occasional personal use, until January 2023 when it was once more placed in service as a rental property?
In TurboTax Online, you are recording the capital improvement, payment recently made, as a depreciable asset.
Record the capital improvement as follows:
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