Last year we built a storage building, and 45% is dedicated to store equipment for our rental properties. Can i enter it as an asset under the rental properties?

[chdeseda1973]

The storage building is located in my home property. I am unsure how to enter it for tax purposes.

[DianeW777]

Yes, you can enter the storage building as a rental asset. You can enter the cost as 100% and then enter your rental percentage when asked the business use percentage. This is considered nonresidential property.

When you add the asset be sure to add the date you placed in service for this rental activity and select that it was also used for personal purposes then enter 45% where indicated.

• Rental home > Edit > Asset > Add an asset, you must select 'Other Property' (bottom) > Continue > Select Other >
• Asset Class select 31.5 or 39 year Nonresidential > Depreciation Method is Straight Line.

See the images below for assistance.

[Carl]

First, understand the asset is "NOT" residential rental property, any way you look it it. It's non-residential rental property and therefore gets depreciated over 39 years.

Select the Add an Asset button

Select Intangibles/Other Property and continue.

Select Other Asset Type and continue.

Describe the asset, enter what you paid for it, and the date you started using it for storing your rental business stuff. Then continue.

Select "purchased new" and select "No, I have not always used this item 100% for business". Then select ""I first used this item at least part of the time for business,....." Then enter The date you started using it for the rental stuff or whatever.

On this screen you are also asked for percentage of "TIME" you used this item in this business for the tax year. The question is worded incorrectly for your specific situation. The question should be "what percentage of this asset did you use for business in 2020?" So this is where you will enter your 45% figure, then continue.

Select "31.5 or 39 (Non-residential real estate)" and continue.

Select straight line and continue.

Now you see the summary on this asset and can elect to show the details. Click Continue and you're done.