how to choose "life term" of deprecation to "27.5 yrs " for bathroom renovation fee that we did 2 yrs after we run teh rental property?

[MindyB]

You can depreciate your rental property improvement for the bathroom renovation over 27.5 years by navigating to the rental property section and selecting add an asset to claim depreciation. 

Here's how to do this in TurboTax Online:

1. Navigate to Federal > Income > Wages & Income Summary > Rentals, Royalties, and Farm > Rental Properties and Royalties (Sch E)
2. Edit the rental using the pencil icon, or create a rental if not yet started.
3. Choose add expense or asset, chooses Improvements, furnishings, and other assets in the list of asset options, then continue.
4. Now, navigate to Assets in the expense list, choose Start, Edit, or the pencil icon next to Improvements, furnishings, and other assets.
5.  Now go through the interview.  If the improvement is not qualified to expense, you'll add the asset.  The asset category should be selected as "Rental real estate property." This selection depreciates the property over 27.5 years.

Here is some information you may find helpful: Rental Real Estate and Taxes

[mw29]

I am using Turbo Tax 2025 ONLINE version and it doesnt work.:

When i chose type as " rental estate property"; what type should i choose for "how would you further describe this?"

here's what I have  tried:
#1

if I choose" "rental estate property" as asset category and I describe this as If i choose"rental property furnishing"; the result of life of amortization as"5 years" only. That is wrong as it should be 27.5 yrs (based on my last years records).

#2

if I choose" "rental estate property"as asset category and i describe this as "Residential real estate"' i have to put the value land which is much higher than my cost of the renovation. teh i got red flag error message said" This value cannot exceed the cost paid for the asset" and i cannot move on from that point.

#3 :

if I choose" "rental estate property"as asset category and i described this as If I choose" Land improvement"; the "life of amortization as 15 years".

is this problem due to ONLINE version of turbo tax? or for online and desktop/mac version will have the same problem?

thank you

[AmeliesUncle]

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@mw29 wrote:

if I choose" "rental estate property"as asset category and i describe this as "Residential real estate"'

i have to put the value land which is much higher than my cost of the renovation.

---

That is where to enter it.

Of your total bathroom renovation cost, $0 of that total cost was for land.  Enter zero.

[mw29]

Besides i tried 3 steps i mentioned earlier, i followed your way by adding "a new one"  with our steps below:

1. Choose add expense or asset, chooses Improvements, furnishings, and other assets in the list of asset options, then continue.
2. Now, navigate to Assets in the expense list, choose Start, Edit, or the pencil icon next to Improvements, furnishings, and other assets.
3.  Now go through the interview.  If the improvement is not qualified to expense, you'll add the asset.  The asset category should be selected as "Rental real estate property." This selection depreciates the property over 27.5 years.

And i am stuck because TT asked for the "land value" which is higher than the renovation cost; therefore i cannot move forward with this route. 

is this ONLINE turbo tax problem only? or problem to desktop version of turbo tax too??

[mw29]

it works!

Thank you!