North Carolina rental property question

Forum|Forum|5 months ago
February 8, 2026
1 reply
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I have a rental property under schedule E. One spot asked for remodeling upgrades before it was rented, that was a new fence and AC unit for $15,000. The next question is tax land value which was $93,000 the next question is home value including fences, decks and such. My tax value is $75,000 should I then add the additional $15,000 in upgrades to that?

Not A Product Question

ReneV4

Level 6

Typically, you would separate the fence because it has a shorter life (15 years) than the building or the AC unit (both 27.5 years).

Ideally, you should create a separate asset for each of these items in TurboTax. Read more about What's a capital asset?

When you are completing the, "Tell us more about your purchase of _", you should include the original purchase price of your property.

On the next screen, you will then be asked about certain closing costs, which will be added to your total building cost.

In TurboTax, when you reach, "What improvements did you make before renting out _?", you will be able to add your fence and AC unit separately.

When you reach, "Enter your property tax info", it is not requesting the improvements that you've already entered. Instead, it is asking you to input information from your property tax statement so that it can determine the ratio for depreciation.

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