renting out a mother -in-law suite attached to our home

[grizzitt]

We have started renting out a suite attached to our home which we have lived in for 23 years. We spent $9000.00 on capital  improvements such as heating and cooling system and parking pad and another $4000.00  on rehabbing and furnishing apartment. For 2019 we had only rented it out for 2 months for a total of $1800.00. How do we put all this into our taxes? 

[LeonardS]

The capital improvements to the property are added to the cost basis of the property, the furnishings can be depreciated, the question you need to answer is was the rehabbing a capital improvement or ordinary repairs.  If they were repairs they can be deducted as an expense against income.  This information will be reported on Schedule E.

A capital improvement will either enhance the property's overall value, prolongs its useful life, or adapt it to new uses.  If it does not meet the criteria for being a capital improvement, then it would be considered a repair.