Rental Property Improvements

[techsupportjoe]

we purchased a rental property and did 20,000 worth of improvements to it  in varius  small parts  water heater hvac  floors  where do i list theses expenses ?  do i group them ?

[view2 · Accepted solution]

 When you have just bought a rental property, any work you do to get the property ready for renting is classed by IRD as capital improvement, and is not fully deductible. You have to add the costs to the original purchase price, and depreciate the total (purchase price + improvement cost) [separate land value ,land is not depreciated]over the life of the property (from the date placed in service (ready to rent).

[JoannaT]

To enter your rental income and expenses, including depreciation, go to:

1. Federal Taxes, then 
2. Wages & Income (or Income & Expenses)
3. Scroll down to Rental Property & Royalties
4. Answer the general questions about the property, then enter rental income and expense.