In a rental apartment which has an existing bathroom remodel that is partially depreciated, what happens regarding depreciation if a new remodel is performed (an improvement, not a repair) that entirely replaces the old remodel on the same bathroom?
Also, how is the new remodel entered into TurboTax if the old remodel is being tracked as a Rental Real Estate Property asset?
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The new remodeled bathroom should be entered in TurboTax as a new asset to be depreciated fron the date it is placed in service.
The old remodeled bathroom should be considered as being disposed of for $0. The undepreciated portion of the old remodeled bathroom can be written off as an expense.
The new remodeled bathroom should be entered in TurboTax as a new asset to be depreciated fron the date it is placed in service.
The old remodeled bathroom should be considered as being disposed of for $0. The undepreciated portion of the old remodeled bathroom can be written off as an expense.
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