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BP607
Level 2

Entering info for cost of furnace in rental property: Expense/Depreciation

Confused by prompt screens: I have a single family rental and replaced the furnace at a cost of $3000. Here's where I'm at.

- Do you have any items for this rental prop that aren't covered by your elections

               • Yes

Property Assets

               • Add asset

-Describe this asset

               • Rental Real Estate Property

-Tell us a little more about your rental asset 

      -How would you categorize this asset?

* This is where I'm a little confused and assume I enter "Residential Rental Real Estate" rather than appliances, carpet furniture or Landscaping. Where do I go from here? Am I on the right track.

** I also have a sidewalk ($1600) to write off. I assume I follow these same steps to this point and then choose landscaping?

Thanks for helping this tired old mind.

 

 

1 Best answer

Accepted Solutions
tagteam
Level 15

Entering info for cost of furnace in rental property: Expense/Depreciation

You select "Residential Rental Real Estate"  and then enter the details on the following screen for the HVAC.

 

Select land improvements for the sidewalk, however.

View solution in original post

5 Replies
Carl
Level 15

Entering info for cost of furnace in rental property: Expense/Depreciation

Because the new furnace becomes "a physical part of" the structure, it is classified a residential rental real estate and depreciated over 27.5 years. It's no different than if you replaced the windows, or put new shingles on the roof.

 

 

BP607
Level 2

Entering info for cost of furnace in rental property: Expense/Depreciation

Thanks. I get that part but it really doesn't answer my question about prompting within turbo tax.

Carl
Level 15

Entering info for cost of furnace in rental property: Expense/Depreciation

Did you miss what I posted earlier maybe?

it is classified a residential rental real estate

What further clarification if any, do you need?

tagteam
Level 15

Entering info for cost of furnace in rental property: Expense/Depreciation

You select "Residential Rental Real Estate"  and then enter the details on the following screen for the HVAC.

 

Select land improvements for the sidewalk, however.

View solution in original post

BP607
Level 2

Entering info for cost of furnace in rental property: Expense/Depreciation

Thanks. I did figure it out. You confirmed. Every year they seem to change prompts, wording and such sometimes leaving out what might have been there last year and it makes things a little confusing. For example, when you got to that screen to add the furnace as an asset, it asks for the asset but gives you an address and an example entry. It's like there is too much programmer input and not enough end user input when they update these form year to year. Or, maybe it's me and the way I read or interpret things. Thanks again.

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