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mw29
Level 3

how to enter asset depreciation for bathroom renovation?

how to enter asset depreciation for bathroom renovation?
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3 Replies
AnnetteB6
Employee Tax Expert

how to enter asset depreciation for bathroom renovation?

A bathroom renovation is considered to be a component of the house itself and will be depreciated over the same recovery period as the property.  

 

If you renovated a bathroom in a rental property, then select Rental Real Estate as the type of property being depreciated when entering the Asset, then Residential Rental Real Estate as the category.  

 

Or, pay close attention to the options on screen as you start to enter the Asset information.  Depending on the cost of the renovation, you may qualify to make the annual election and claim it as an expense instead of depreciating the improvement.

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mw29
Level 3

how to enter asset depreciation for bathroom renovation?

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

 

how to enter asset depreciation for bathroom renovation?

for the barroom remodel you enter the cost of land as zero. 

 

You select residential real estate so it will assign a life of 27.5 years

 

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