Rental renovations assessment

[Neus]

The condo that I rent out had a building renovation assessment in 2020 of $33,000.  Am I able to take the special depreciation deduction for the full assessment or do I need to depreciate it over 27.5 years?  Or could I depreciate it as an improvement over 15 years?

[Carl]

Because it's a property improvement to the structure itself, you have to add it to the cost basis and depreciate it over 27.5 years. So you'll add it in the assets/depreciation section with an in service date of when the improvement was completed, or when the property was placed in service - which ever date is *last*.