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Renting part of a home: how to handle improvements and repairs

We improved the side yard, changing it to turf for more functionality and increasing the curb appeal, as well as repaired the garage door. These do not directly affect renters but are part of the home overall and affect curb appeal. Can these be included in the taxes? We are using a percentage of the sq footage to calculate deductions (or depreciation). 

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PatriciaV
Expert Alumni

Renting part of a home: how to handle improvements and repairs

You may allocate a portion of the repairs and improvements to the rental property. If you spent less than $10,000 on the rental portion, you may be able to elect the Safe Harbor Election for Small Taxpayers. This election allows you to expense up to $10,000 if you qualify. Otherwise, the costs are recorded as an improvement subject to depreciation.

 

This election appears at the beginning of the Assets/Depreciation section on the Rental Property Summary page. TurboTax will ask if you want to skip your elections. Check the No box and continue through the interview questions to see if you qualify. 

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