Rental Property

I live in a Duplex. In 2019 I completely remodeled the side of the duplex that I do mot live in. I spent about $22,000 on this remodel. What is the best wayfor me to duct the full amount of money that I spent for this remodel rather only half the normal deduction

posted

Your remodel is not a deduction per-se. It's a property improvement. Therefore it gets capitalized and deprecated over the next 27.5 years.

You'll enter your capital improvement in the assets/depreciation section. Then if you declare that specific improvement 100% business use (since you only remodeled the unit you rent out) the entire cost will be depreciated over 27.5 years.

When you enter the asset it's classified as residential rental real estate. Your COST will be the $22K you spent for it, and the COST OF LAND will be zero. Depreciation on that asset will start on the "in service" date, which is the first day a renter "could" have moved in once the renovation was complete.