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Where exactly do I enter improvements made to my rental property?

I have a number of improvements (new carpet, new doors, moulding) - should each be entered as a separate line for improvements?
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1 Reply
Carl
Level 15

Where exactly do I enter improvements made to my rental property?

If all the items were placed in service on the same date, you can just group them together as a single asset entry in the assets/depreciation section.  New doors and molding can be grouped as a single asset entry, classified as residential rental real estate and depreciated over 27.5 years.

The carpet can be entered as a separate item, classified as Appliances/Carpet/Furniture and depreciated over 5 years.

For the carpet, if it's cost (including installation) was less than $2,500 then you can just expense it under the safe harbor di-minimus act. Enter it in the rental expenses section as a miscellaneous expense.

 

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