How to expense or depreciate apartment building renovation for a rental property?

[gordonhtfu]

I have a unit in a 40 year old apartment.  There is a special assessment given by the property management to all owners to do a major building repair: skylight replacement, replacement of weather resistant barrier, removal and replacement of siding, air conditioner ports, deck soffits, all windows throughout the building, deck doors, waterproof coating on elevated decks, deck railings, fireplaces, front door replacement, and entry concrete/stair repair, etc.

The cost is quite high (about 10% of the property value and about 3 times the yearly rental income).

Should this be Expense?  (to be fully deducted this year)

Or should this be an Assets/Depreciations?  (If so, is this "category H - Land improvement" which depreciates over 15 years or "category I - Real Estate Property" which depreciates over 27.5 years in Turbo Tax)

[ColeenD3 · Accepted solution]

Are you saying that the property management is paying for the improvement? If they are, you can't claim the expense as you did not pay for it.

If the expense is yours, you would depreciate it over 27.5 years. It is not land.

[gordonhtfu]

Thank you.

The building renovation is paid by all apartment owners (including myself). Owner management does not pay for it.

[DianeW777]

As indicated by @ColeenD3, the would be considered a residential rental depreciated over 27.5 years, since you are responsible for the payment of renovations.