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

[BP607]

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.

[Carl]

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]

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

[Carl]

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 · Accepted solution]

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.

[BP607]

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.

[MG26]

I know this is an old post but I have the exact same issue. It says to put in the description of asset (furnace) and gives an address as an example so it makes me think that I'm depreciating an actual real estate property. Some verbiage such as HVAC, Furnace, Air conditioner is never included in the category selection so not intuitive at all. I'll bet a lot of people put it under appliances with 5-7 year depreciatation period by mistake.

[Carl]

@MG26 you "are" depreciating rental real estate. Anything that cost more than $2,500 and becomes "a physical part of" the structure (such as your new furnace) is considered to be residential rental real estate property. So in the COST box you enter what you paid for the new furnace (including shipping and installation), and in the COST OF LAND box you enter zero. Then press on. It gets depreciated over 27.5 years with depreciation on that specific asset (the furnace) starting on the date that asset was placed in service.