I bought a rental property (foreclosure) and put approximately 23K in it before it was rented. Do I enter that 23k under the section any costs made prior to renting?

[thomaslongmore]

On 6/6/17 I bought a rental property on an online auction.  It was a foreclosure and needed a lot of work to make it rent ready.  I spent a little over 23K on everything from light bulbs and screws to a new HVAC and hot water heater.  All of this was done before I rented it out on 10/1/2017.  When I entered the rental property on turbo tax I got to the section asking the question "Any property improvements made?  Enter the cost of any additions and improvements made prior to when the property was available for rent"  Would I enter the 23k amount in the remodeling space or is there a way I could break down the expenses to realize more losses in this tax year instead of depreciating it out over several years?  Thanks!!!

[ScottT]

Depends on how the amount was spent on your rental property, either it is deductible expenses or capital improvement. The following TurboTax FAQs can help you determine which category to treat your business expenses.

Deductible expenses- You can deduct expenses that is ordinary and necessary to your rental property such as light bulbs and screws in the year that was paid. Please see the FAQ: https://ttlc.intuit.com/replies/4209856

Capital improvement- Adding value of your rental property and extend its useful life such as a new HVAC and hot water heater Please see FAQ. https://ttlc.intuit.com/replies/4791833