Converting a personal residence to a rental property

[DJC69]

In August 2022 we converted our personal residence of 19 years to a rental property.  Between 2003-2022 we spent over $100,000 on capital improvements such as a full kitchen remodel, bathroom remodels, installing new windows, doors, flooring, roof, fence, driveway, etc.  I see in turbo tax where to enter the original purchase price and the land value, but where do I enter each of these capital improvements?

[Mike9241]

when you convert real and personal property to rental, the tax basis for depreciation of each asset is the lower of adjusted basis (usually cost) or fair market value on the date of conversion. each asset is entered as a separate item. you'll come to a section for sale of property/ depreciation. select update. then after entering the first asset, you should see a link or question to add (another) an asset.

i would consider the house and improvements to it such as kitchen and bathroom remodeling. new windows, flooring, and roof as 1 item. In other words, permanent attachments and changes to the house itself. however, the fence and driveway would be separate because they have different tax life (15 years) than the house. 

[Anonymous_]

I basically agree with @Mike9241, except I believe the new fence and the driveway should be added to the total basis and deprecated as such (rather than separately).

After all, if an appraiser were used to provide an opinion on the fair market value on the date of conversion to rental use, the appraiser would take the new fence and driveway into account in the appraisal.