Hello, I renovated a bathroom in my rental property house. In turbo tax, it asks to "Tell Us More About This Rental Asset". There are 4 options. which option to use?

[ThomasM125]

I believe you are referring to the choices of Residential Rental Real Estate, Appliances/carpet/furniture and Land improvements.

If so, the correct answer would be Residential Rental Real Estate. The improvements become part of the house, so they are depreciated accordingly.

[kevinpfalls]

Thank you and I appreciate it.

I having difficulty with the next question in the wizard. I think my answer would be "none of the above", but figured I would ask.

There are 4 options:

1. I traded in an old asset to acquire this one

2. I purchased this asset new

3. The item was sold, retired, stolen, destroyed, disposed of, converted to personal use, traded in, or given away.

4. none of the above

[gloriah5200]

Yes, I would think that renovating a bathroom would require the purchase of new bathroom parts like vanity, toilet, sink, shower/tub, flooring, etc.  If you are renovating the entire bathroom you can probably add all of the new purchases for the bathroom together to get one cost.

Generally, if you are renovating a bathroom in a rental house, aren't you using new parts to do that new remodeling?  I don't think you traded old parts for the new parts.