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Level 2
posted Jun 6, 2019 12:01:48 PM

I have a rental property that I had gutters installed (previously had none) to mitigate some wood rot/water splash back issues. Is that deductible and how?

0 8 10754
8 Replies
Expert Alumni
Jun 6, 2019 12:01:49 PM

Yes, that's an improvement to your property, that can be listed  under Assets/Depreciation. 

You may be able to expense the cost of your gutters all in one year, and TurboTax will ask you the questions in the Assets/Depreciation section to see if you qualify. See the FAQ below, for Items $2500 or less, and for Building Improvements.

https://ttlc.intuit.com/replies/4682171

Level 2
Jun 6, 2019 12:01:51 PM

Where in Premier edition do you enter items for Safe Harbor Election? Do you have to go back to the Expenses section and add it in the last screen that says Any Miscellaneous Expenses?

Expert Alumni
Jun 6, 2019 12:01:52 PM

First you add it in the Assets/Depreciation section. You'll be asked  if your improvements cost $2500 or less, and also  if your building improvements questions. Then you can make the election, and you go BACK to enter your $2500 or less improvements as  expenses. It's a two-step process.

Level 2
Jan 9, 2022 5:58:45 PM

I also added new gutters to the rental, it had none before. Total paid is less than 2500. 

How do I enter correctly 179 elections in TT? 

In the "Asset Entry Worksheet" field 5, what should be the Type of Asset? 

  1. Is it F - Rental furnishing
  2. J6 - Roof/HVAC etc
  3. Something else

The selection of this categorization seems to drive the validation of this worksheet. 

The only way I found to take 179 elections is to use the "F - Rental furnishings" Asset Category. Is it the correct category to use for the new Gutters (rental did not have gutters before)? 

 

Level 2
Jan 9, 2022 6:13:54 PM

n/a

 

Level 15
Jan 10, 2022 4:24:08 AM

If the cost is less than $2500 you can expense it as a repair and skip the asset entry all together. 

Level 15
Jan 10, 2022 4:40:17 AM

You may not use section 179 to make improvements to your building*.  Section 179 is only for the cost of personal property items you purchase for use inside rental units—for example, kitchen appliances, carpets, drapes, or blinds. 

 

But you may deduct building improvements as "repairs" since the amount is less than $2500.  If the amount had been more than $2500, you could still deduct it if you got separate invoices for the gutters and the installation and each was less than $2500. 

 

*Reference: https://www.nolo.com/legal-encyclopedia/section-179-expensing-rental-property-owners-deduct-long-term-asset.html

Level 15
Jan 10, 2022 6:58:28 AM

New gutters are classified as "Residential Rental Real Estate" and get depreciated over 27.5 years. Since they become a permanent physical part of the structure, they can't be expensed. This is in the same "grey area" as a new hot water heater.