i did do this but TurboTax allowed me to take a special depreciation allowance, 5 yr recovery pd 200 DB method perhaps because of passive activity loss?
Review your entries for the siding. Make sure that you Choose:
· X rental real estate property
· X residential rental real estate
at the beginning. Special depreciation isn't allowed for real property (houses, buildings, etc.)
but i'm not depreciating the house, i'm depreciating the siding. perhaps we should chat somehow
but i'm not depreciating the house, i'm depreciating the siding. perhaps we should chat somehow
Sorry, can't chat. You'll be "adding" a brand new asset, just as you would add a new refrigerator. Except this asset (your vinyl siding) is almost like a new separate building "added" to your "original" rental property.
At the "Your asset summary" page for your rental ; little grey button generally to the lower left of screen "add an asset" click it ,
After you click add an asset screen (See the attached screenshot in the original answer. Click to enlarge.)
"Describe This asset"
Select "Rental Real Estate Property"
Continue
Next screen:
'Tell us a little more About your rental asset"
select "Residential Rental Real Estate"
For a 27.5 year depreciated asset for the new roof.
ok thanks but I have several things that i have been depreciating since i bought the house in 2002 so should i add them to TurboTax? until this yr i was doing the taxes by myself but because i sold my home started doing TurboTax this yr only for 2016
Yes, add them as soon as possible. You'll have to add each asset and say when you "placed it in service" (what year you originally purchased the asset) and TurboTax will take it from there and ask you the relevant questions. Follow along the instructions above for each asset. Some, like appliances, will be handled differently and will be depreciated for 5 years instead of 27.5 years.
have noticed though that some of your figures are different then mine. eg i have been depreciating the house (which i purchased in 2002 for 85K) each yr at $2,226 but TurboTax indicates that this yr (2016) it should be $3,091. should i just depreciate the TurboTax amount. I think the 2226 figure was originally calculated by HR Block.
now i found the reason for different amounts the basis was $61,222 not 85K. will have to check the sale info to determine why it was the lower amount...
Very good catch. It seems you're on the right track. I'm leaving for the day. Please let me know how you do. Good luck!
Such expense is considered an improvement and must be capitalized (depreciated). You would enter the expense as an asset in the rental section.
Here is how you enter rental assets and improvements:
1.
Select Federal Taxes (Business in
the Home & Business edition).
In Online TurboTax Premier, click the bars at the upper left corner to
show Federal Taxes on the selection list; enlarge the screen if
needed to show the left side selection list. If you don't see the menu bars, you
must first step through each of the interview screens in TurboTax.
2. Select Business Income and Expenses and in the next screen, click I'll choose what I work on.
3. On the Your Income Summary screen (TurboTax Premier edition) or the Your Business Income screen (TurboTax Home & Business edition), scroll down to the Rentals and Royalties group.
4.
Click Start/Update next to
the Rentals and Royalties line and step through the rental
interviews to the Your <name> Rental Summary screen.
If you have more than one rental entered, select the out-of-state property.
5. Click the Start/Update button next to each topic on the Your <name> Rental summary screen to enter your rental income, expenses, assets, depreciation, and vehicle expenses.
Choose:
· X rental real estate property
· X residential rental real estate
You will now have "another" 27.5 year property for the improvement.