Hi there,
My dad is getting older and has been behind on doing his taxes , he has a few small rental houses that recently have been fully depreciated or close to it. Several years ago he refinanced , took money out and remodeled the property completely. Under depreciation how would I start this over? I can click and select "residential real estate" and place something into service which is the remodel, is this what I do? In this case if it asks what the prior depreciation is I can put $0 ? Is this new deprecation a line item under "your property assets" and list the remodel there?
Also, before the remodel he owed about $84k on the mortgage. Afterward he got a loan and paid off that old loan and took the balance to do the remodel and now owes $193k. So the remodel cost about $109k in 2020. He started the remodel in Jan of 2020 so is that the date "placed into service" or the date of the loan which is 12/29/2020? He started the remodel using his own building materials and credit lines before he got the loan so its a bit confusing on how to enter that in TT.
Thank you!
You'll need to sign in or create an account to connect with an expert.
The total cost of the remodel......improvement.....is depreciated over 27.5 years the same as the underlying real estate.
The depreciation starts as soon as the improvement is placed in service.
The total cost of the remodel......improvement.....is depreciated over 27.5 years the same as the underlying real estate.
The depreciation starts as soon as the improvement is placed in service.
Still have questions?
Make a postAsk questions and learn more about your taxes and finances.
Juancar
New Member
sornord1
Returning Member
daklin
Level 2
RustyShackleford
Level 3
mniksg
New Member
Did the information on this page answer your question?
You have clicked a link to a site outside of the TurboTax Community. By clicking "Continue", you will leave the Community and be taken to that site instead.