How to fix rental depreciation problem

[skycamper]

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!

[M-MTax · Accepted solution]

The total cost of the remodel......improvement.....is depreciated over 27.5 years the same as the underlying real estate.

[M-MTax · Accepted solution]

The depreciation starts as soon as the improvement is placed in service.