Rental house remodel
Sign Up

Why sign in to the Community?

  • Submit a question
  • Check your notifications
or and start working on your taxes
Announcements
TurboTax has you covered during Covid. Get the latest stimulus info here.
cancel
Showing results for 
Search instead for 
Did you mean: 
bgibson85
Returning Member

Rental house remodel

We did some work in our rental house ($12K) to include installing flooring, painting, new countertop in the kitchen, backsplash, new vanities in the bathroom.  No new appliances.  I only have one cost as this included parts and labor.  Can I just enter one entry as a remodel for $12K under assets? I tells me I can take a $2K deduction every year for 5 years.  Is the the right way to do it? Should these improvments always be depreciated? 

 

Thanks

 

4 Replies
JotikaT2
Employee Tax Expert

Rental house remodel

Yes, rental improvements should be depreciated since they improve the life of your rental over several years.  Therefore, you would take a portion of the depreciation each year as you use the improvements.  

 

Please see the link below for more details on how this process works.  You will also see the steps to report this in TurboTax in the link.

 

Rental property capital improvements

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"
Carl
Level 15

Rental house remodel

Can I just enter one entry as a remodel for $12K under assets?

Yes. Since you have only one bill for everything including the painting, that pretty much confirms your painting was "a part of" the property improvements. Just enter everything as one item (assuming it's all placed in service on the same date) in the assets/depreciation section, classify it as residential rental real estate, and it gets depreciated over the next 27.5 years.

 

bgibson85
Returning Member

Rental house remodel

Thank you.  The cost would be $12K correct when it asks the amount you paid for it? Then do I select "I purchased this asset new"? 

Carl
Level 15

Rental house remodel

Yep. For "almost" any asset classified as residential rental real estate, it's purchased new. Your cost basis includes the cost of the materials, installation and labor, shipping, permits, and any other costs associated with the property improvement.

Dynamic AdsDynamic Ads
v
Privacy Settings