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Level 1

What happens when a partially depreciated bathroom remodel is replaced entirely

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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Accepted Solutions
MinhT1
Employee Tax Expert

What happens when a partially depreciated bathroom remodel is replaced entirely

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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1 Reply
MinhT1
Employee Tax Expert

What happens when a partially depreciated bathroom remodel is replaced entirely

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.

**Say "Thanks" by clicking the thumb icon in a post
**Mark the post that answers your question by clicking on "Mark as Best Answer"

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