Where do I claim major repairs to rental property?

[HelenaC · Accepted solution]

If the major repairs are improvements, you must capitalize (depreciate) any expense you pay to improve your rental property. See instructions below on how to enter. 

An expense is for an improvement if it: 

• Results in a betterment to your property.
• Restores your property.
• Or adapts your property to a new or different use.

A rental expense is an expense that must be both ordinary and necessary. Their useful life is generally less than one year. Rental expenses are deducted in the current year. For example, light bulbs, paint, furnace air filters. See instructions below on how to enter. 

Assets  have a useful life of more than one year and must be depreciated over their useful life. For example, furnace, flooring, windows.

Some assets may be deducted in the current year, depending on current tax law. 

How to enter income and expenses from a rental property:

1. With your return open in TurboTax, search for the word rentals in the search box.
   • Click Jump to rentals in the search result.
2. Answer Yes to the question Did you have any rental or royalty income and expenses?
3. Follow the on-screen instructions as you proceed through the rental and royalties section.
   • We'll first ask you to enter general information about your rental (description, address, ownership percentage, etc.) 
   • Eventually, you'll come to the Rental Summary screen which is where you enter your:
     • Rental income
     • Rental expenses
     • Capital assets and depreciation
     • Vehicle expenses

Additional information:

Where do I enter income and expenses from a rental property?

https://ttlc.intuit.com/replies/3288530

What kinds of rental property expenses can I deduct?

https://ttlc.intuit.com/replies/4209856

[GUARDMEMBER]

Thank you for this information can you provide steps on how to complete this

[TomK2023]

To enter your rental:

1. Open or continue your return, if you haven’t already.
2. Locate the Search bar in the upper right of your screen. Search for rentals and select the Jump to link at the top of the search results.
3. Answer Yes to the question Did you have any income from rentals or royalties?
4. On the next screen, Let's see if you're a real estate professional, select any options that apply to you.
5. On the screen What are you here to report?, select Rental property and Continue.
6. If you have more than one rental property to report, no problem—just start with one, and we’ll come back to the other one(s) later.
7. On the following screens, we'll ask you to enter all the info we need about your rental property, including a description of the property, your rental income, any expenses and assets, and other less common situations about your rental.
8. When you reach the Here’s your rental property info screen, double-check the info you entered to make sure everything is accurate and that you haven’t left anything out.

• Once you’ve entered all your info, you’ll be taken to the Your income and expenses screen.
• If you have more rentals to enter, scroll down to Rental Properties and Royalty Income (Sch E) and select Edit/Add next to this line.
• On the Your 2023 rentals and royalties summary screen, select Add another rental or royalty.
• From here, follow these instructions again, starting with Step 5, and repeat until you’ve entered all your rental income.

Please see this TurboTax FAQ for additional information: How do I handle capital improvements and depreciation for my rental?