Where do i enter seismic retrofit expense

Forum|Forum|4 years ago
February 9, 2022
2 replies
0 views

where do I enter california seismic retrofit cost

TurboTax Self Employed Online

MaryK4

Level 15

You will enter as a depreciable asset. It is a betterment to the building structure and is treated as an improvement to the building. You must capitalize the amount paid. Just to clarify, are you entering for a rental property or home office?

If it is for your personal residence, you would not deduct but add to the basis of the home.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

cl080141Author

Level 2

I took this from the internet. I paid $6000 total for retrofit, but was refunded $3000.

Is earthquake retrofit tax deductible?

If your retrofit is completed on, or after, January 1, 2017, and before January 1, 2022, you may qualify for a credit on your taxes. ... If you do this, you can get credit for 30% of the qualified costs of your seismic retrofit.

RobertB4444

Level 15

@cl080141 That bill was passed in 2015 and effected your 2016 taxes. There is no tax break in 2021 for residential seismic retrofits. However you can apply to receive a rebate on money you spent on that seismic retrofit from the California Earthquake Brace and Bolt program. That is where that $3000 comes into play and you are correct - since it is a reimbursement of money that you have spent it is not taxable.

**Say "Thanks" by clicking the thumb icon in a post. **Mark the post that answers your question by clicking on "Mark as Best Answer"

cl080141Author

Level 2

According to the bill -

This bill, for taxable years beginning on or after January 1, 2017, and before January 1, 2022, would allow a tax credit under both laws in an amount equal to 30% of the qualified costs paid or incurred by a qualified taxpayer for any seismic retrofit construction on a qualified building, as provided.