entering depreciable expense on a rental property

Forum|Forum|1 year ago
February 26, 2025
1 reply
15 views

I followed these steps but could not find a place to enter the depreciable expense of new siding---just basically cost of the property and cost of the land: Thanks

Re: Where/how do I depreciate new siding on a rental property in Premium TurboTax. Thanks

You will depreciate the new siding as an asset on Form 4562 on your tax return.

Here's how to do this in TurboTax Online:

Navigate to Federal > Wages & Income > Rental Properties and Royalties (Sch E) Edit the rental using the pencil icon Navigate to Assets, choose Improvements, furnishings, and other assets, choose pencil icon to edit and skip to #6; or, if Improvements, furnishings, and other assets is not an option, select Add expense or asset Choose Improvements, furnishings, and other assets and continue Improvements, furnishings, and other assets will appear in your list of assets, choose to start Continue through the interview and answer yes to Did you make any improvements in 2024? Continue until you see Your Property Assets and "Add an Asset" You can describe the asset as Rental Real Estate Property. Categorize it as Residential Rental Real Estate, and answer the remaining questions.

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Ask the Experts - Vacation - Feb 2025

DaveF1006

Level 15

If you are entering this for your own personal residence, there is no place for you to enter depreciable siding. Instead, the cost for the siding is added to the basis of your personal residence to be used to determine your capital gains once you sell your house.

If this is for rental property, here is how you would enter this in this precise set of steps to report depreciable assets under the rental activity. TurboTax software will determine the depreciation for each asset.

Down the left side of the screen, click on Federal.
Down the left side of the screen, click on Wages & income.
Scroll down to Rentals, Royalties, and Farm. Select Show more.
Select Start / Revisit to the right of Rental Properties and Royalties.
At the screen Your 2024 rentals and royalties summary, you are able to view any rental or royalty activity that has been created.
Click Edit to the right of the rental activity.
At the screen Here's rental property info, scroll down to Assets. Click Edit to the right.
At the screen Your Property Assets, click Add an Asset.
At the screen Describe This Asset, This is Residential Real Estate Property Click Continue.
At the screen Tell Us a Little More About Your Rental Asset, select a category. This would be classified as Residential Rental Real Estate. Click Continue.
At the screen Tell Us About This Rental Asset, enter the asset information. Call it Residential Siding and the cost, which includes installation and materials Click Continue.
Don't list anything for the cost of the land but do list the day purchased.
At the screen Tell Us More About This Rental Asset, select i purchased this asset. and that you used it 100% for business
Enter the date that you started using the asset for business. Click Continue.
At the screen Asset Summary, click Show Details to see the depreciation details. it will show that the asset is being depreciated over 27.5 years and then the amount of depreciation for the siding.

Once this information is added, a Form 4562 will be generated in your return to report the depreciation.

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NealS

Level 2

Win11 Desktop TT2024 Premier

I also need enter a new depreciable rental property expense: hardscaping & drainage. Following DaveF1006's

instructions "click Add an Asset." has no result (eg "Your Property Assets" window doesn't change). Clicking Done then Back shows a new asset "Untitled". Clicking "Edit" again has no result. Clicking Done reveals "Rental Real Estate Property" radio button. Clicking "Continue" again has no result.

Switching to Forms, the "Asset Entry Worksheet" takes an input ("Description of assets") but I don't know what other values to enter. Switching back to "Step-by-Step" the new description is shown however clicking "Edit" again has no result.