Depreciation of an Improvement

[JohnOski]

I am using Turbotax this year for the first time and taking over from a CPA who previously did my returns.  For my rental property, there was an improvement in 2018 (bathroom remodel) costing $8,725.  The CPA gave this a 5 year life and listed the depreciation method / convention as 200DB / HY and listed the total amount as a Special Depreciation Allowance.  He also had prior and current year depreciation listed as zero.  When I enter this into Turbotax the system gives it a life of 27.5 years and a current year depreciation amount of $337.  How do I adjust the system?  What is the correct way to handle this item?

[JeffreyR77]

A remodel in nearly all cases would be classified as a capital improvement - extending the life of the asset, your home, rather than repairing or restoring a broken asset to serviceable condition such as a broken exhaust fan or leaky faucet. 

The bathroom remodel should correctly be depreciated over 27.5 years for rental property located in the US (40 years for property outside of the US). 

Last year's return has a depreciation deduction that is incorrect and your return needs to be amended to correct the error. 

This may result in a tax balance due unless your rental losses are not deductible due to passive loss income phase out.