How to input roof and wall repair to rental property?

[SRB20]

This past year I had to repair an exterior wall and part of the roof on my commercial building. I believe this needs to be considered improvement to real property, and I'm not able to expense it all in one year.

Where do I put this information in turbo tax? It has the option to add in a new " rental asset", is this the option that I use for the description of the wall repair? And what date should I put as the "date purchased or acquired"?

Thanks!

[HelenC12 · Accepted solution]

@Carl  Thank you!

@SRB20  Please see my revised solution.

The date purchased or acquired is the date you paid for the work to be done. If you paid in installments, the date the work was complete.

Please see the instructions below to enter your wall and roof cost:  

1. Type rentals in the search bar and click search.
2. Click on Jump to rentals.
3. Continue with the onscreen interview.
4. If you get to the Rental and Royalty Summary screen, Edit the rental.
5. At the Review Your XXX Rental Summary screen, scroll down to Assets/Depreciation, click Start/Edit.
6. On the next screen answer Yes. 
7. Continue with the onscreen interview 
8. On the Did you make improvements to XXX in 2019? screen, click Yes.
9. On the next screen you will have an option to take an annual election, if you qualify. 
10. If you do not take the election, continue to enter your roof  and wall on the Describe This Asset screen. Select Intangibles, Other Property. Click Continue.
11. On the next screen, click on Other asset type. Continue.
12. Continue with the onscreen interview until you get to Asset Class. Select 31.5 or 39 (Nonresidential Real Estate).
13. Enter your information and continue until complete.

Related information:

• How do I handle capital improvements and depreciation for my rental?
• What can I expense or depreciate with the business safe harbor election?
• What is rental depreciation and how does it differ from an expense?

[Edited 3-4-2020|5:20 am PST]

[Carl]

@SRB20 I see in  your post where you've clearly stated you did some roof and wall work to *COMMERCIAL* property. @HelenC12 's response is based on the assumption that you own the property and are the landlord for that property, and that it's residential property. (It's commercial property). So when you enter the asset make sure you select the option to indicate it's a commercial property improvement. Otherwise, the depreciation on that asset will be wrong.

If you do not own the property but your business rents the property and paid for the roof and wall, then it's entered in the Business Assets section and classified as a leasehold property improvement.