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wafer1
Level 2

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

 
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juliob
Level 2

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

You will need to select that 2017 was the first year you rented this property. (See First Year Rented image)

If you have trouble to getting to the screen above, please follow steps 

Once you have selected first year rented, follow the screens until you get the the 'Any Property Improvements Made?' screen. (See Property Improvements Image)

Before entering any improvements, please read the following FAQ to determine if you do have improvements that can be added to the basis of your rental property:

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5 Replies
juliob
Level 2

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

You will need to select that 2017 was the first year you rented this property. (See First Year Rented image)

If you have trouble to getting to the screen above, please follow steps 

Once you have selected first year rented, follow the screens until you get the the 'Any Property Improvements Made?' screen. (See Property Improvements Image)

Before entering any improvements, please read the following FAQ to determine if you do have improvements that can be added to the basis of your rental property:

MichaelL1
Level 15

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

You would go to the asset that was placed in service and change the cost (or basis) by adding the cost of the improvements to the cost basis already listed there.

For example, if I have a building listed as $80,000 and did news windows a few months before renting it out, I can add the cost of the windows and installation of them to the $80,000 in computing my deprecation. 

wafer1
Level 2

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

So all of the improvements, when added to the rental, are depreciated over 27.5 yrs even if they are appliances/flooring etc that usually have shorter depreciation schedules?
MichaelL1
Level 15

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

No those assets would be listed separately on the Asset depreciation schedule and would have a shorter life.  I was referring to improvements made to the building itself in my answer. So if not related to the building list all of those separately as the depreciation deduction will be greater due to shorter life on those assets.
wafer1
Level 2

How to enter improvements made prior to in service date in same year to capture proper % allowable depreciation? in service is 10/1/2017.

Thank you
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