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!
