I am a landlord and this year I built a storage shed. Where do I list this to get the deduction?

[angelamerrill73]

This is an owner occupied duplex and the shed is used to store things like lawnmower, snow blower and tools/supplies to maintain the property.

[maglib]

@angelamerrill73  If the shed is a structure that is not permanent in nature then you can use the 179 deductions under personal property. If the shed is a "building" then it is real property and does not qualify for the Section 179 Deduction and you would depreciate is as a permanent structure as an additional asset you placed in service.  In the rental portion of the interview for Schedule E of turbo tax you would either enter the asset and choose to expense it as section 179 if not permanent, or you can add the asset in and choose the appropriate asset class and TT will depreciate it accordingly.  TT is very straight forward during the rental interview section on expenses.

Was this helpful or please ask any additional questions.

[caddygreat]

where does this goes under describe an asset ?  there are four  options.  does this apply only for new or also an old shed? how do i calculate the value if shed came with the house but it is usedto  storage lawmower, snowblowers and other equipment/ tools ? 

[Carl]

Assuming it's a permanent structure, if the shed is for the exclusive use of the paying renter, then it's classified as a rental property asset and depreciated over 27.5 years  If the shed is not indicated on your property tax bill (meaning that no permits were required to build it on your property) then it's just a storage shed and can be expensed as such, provided it's for the use of the renter.

If the shed is for your personal use (such as storing rental equipment or supplies) then you have nothing to claim on the SCH E or elsewhere on your personal tax return.

[caddygreat]

I am doing my taxes as an owner occupied duplex and  I would like to depreciate our  storage shed. we had to upgrade this year and did a lot maintenance like a new roof, etc.. I owned  the house since 2018. we use this shed for both my personal use but also to storage tools and equipment for the maintenance of the house. I know I can deduct half of it I believe. I am wondering how to do it. section 179, bonus depreciation ? can you point me to the direction on how to do this please? thank you 

[Carl]

You're probably thinking of a home office. There is no provision for a home office, for SCH E rental property. If you are a real estate professional that reports income on SCH C, then you "might" be able to claim it as a home office for that. Otherwise, nothing concerning the shed is deductible in connection with the portion of the property that is rented to the tenant.