Storage building to support rental properties

[Ken-B]

I completed a schedule E/QBI for the income for my rental properties; however, I also constructed a storage building/warehouse on my personal property last year, 100% to support my rental property work, which is my main source of income.

I saw another post that suggested that such structures be 7-year assets, depreciated under Schedule C. Presently, I have all rental income and expenses listed under the Schedule E. Should I do a separate Schedule C just for the storage building asset, leaving the Schedule E intact? 

[PatriciaV]

If the building is used exclusively for the rental property (and you are not a real estate professional), the building would be considered a Rental Asset for Schedule E. Only if the building is used by a Schedule C business would it be reported for that business.

Since storage buildings don't have an assigned class for depreciation purposes, it defaults to a 7-year class life. Choose "Tools, Equipment" and "general purpose tools/equipment" to set up the correct depreciation settings.

You have the option to claim a Section 179 deduction and/or Special Deprecation (60% for tax year 2024), with regular depreciation for the remaining balance. TurboTax will ask you about this when you enter the asset.

Check the "Show Details" box to review the settings used to calculate depreciation for this asset.