I had to replace the air conditioner unit in my rental property. How do I report this expense? Does this expense qualify for the year the equipment was installed or must it be written off over time? What is the typical time? 5 years?
You will report this as a depreciable expense. The time for you to depreciate significant capital improvements to a rental home is 27.5 years.
I have a similar question. I have sold a rental for which I have been depreciating a roof and furnace. How do I recapture that depreciation and do I list each as sold for $0 (as an asset) when I list the sale of the home for it's total?
That's exactly how you'll do it. Unless you want to allocate the sales price across all of the assets associated with the rental house.
Will Turbotax automatically enter the past years' depreciation?
@Contented TurboTax will automatically carryover accumulated depreciation from previous years and calculate the current year depreciation on assets entered in previous years.