I'm using turbotax home and business CD. I have 2 rental properties under a LLC which is owned by myself and my husband. Under Business Assets Summary, I added a real estate property. It asked for date of purchase. Then I clicked continue, it asks for how i would categorize this asset and gives me 4 choices: 1. Nonresidential real estate 2. Qualified retail improvements 3. Qualified restaurant property 4. Qualified leasehold improvements. My rental properties don't fit into any of these categories. It says to calculate depreciation correctly, I must select the type of asset applicable for this asset. What should I do?
Yes, Residential Rental activity is reported on Schedule E, found under the Rental Properties section of Business Income. Even though the properties are owned by an LLC, the activity is entered in this section and not on Schedule C (Business Income & Expenses).
If you must report this activity on Schedule C, you may use Forms Mode to select Residential Rental Property as the asset class. You'll find this on Line 4 of the Asset Entry Worksheet. You'll also need to change the asset class on Line 46 of the same worksheet.
You may wish to review this discussion regarding LLC's owned by husband and wife: How should a husband-wife LLC file? This is especially important if you do not live in a community property state.