Why do I enter an amount and then it shows up differently?

[lorenchasse]

When I enter an amount under rental repairs ($1,000) it shows up as much less ($200).  Why?

[MarilynG1]

In the Rental Section, under 'Rental Property Info' did you indicate that you were a 100% owner?  If not, TurboTax may be calculating a % of expenses you enter.

Also, if you are renting a portion of your home, and indicated that you wanted TurboTax to calculate your expenses, this may be another reason for this outcome. 

If this doesn't apply, please give more info and we'll try to help. 

[lorenchasse]

Thank you.  I did indicate I was 100% owner.  I wonder if the percentage calculated is a reflection of the number of days rented that I entered? What if the repair costs I entered were exclusively for the rental space that is part of my home?  Also, if I purchased a new roof and rented my unit for 1/3 of the year, does this mean that 1/3 of the roof cost would be applied? Thanks for your help with this.

Loren

[MarilynG1]

Yes, you should indicate that you 'rented all year' which means the time that it was available for rent (even if not the full year).  In other words, you did not use it for personal purposes at any time it was available as a rental (whether it was actually rented or not). 

If you purchased a new roof for your rental unit, you can deduct or depreciate the entire expense (Assets/Depreciation).  

You are presented with options for 'Expensing' or 'Depreciating' when entering your Asset.  For a new roof (a Capital  Expenditure), you can depreciate it and add it to the Cost Basis of your rental property.

Here's more info:

A capital improvement is something that actually adds to the value of the home or increases its usefulness, and is added to the basis of the property.  Some examples of capital improvements are:

• Remodels and room additions (including decks and porches)
• New or upgraded landscaping, irrigation, sprinkler system
• Hardscape such as pavement, block or retaining wall, patio
• Fencing
• Swimming pool, spa
• Storm windows, doors
• New roof
• Central vacuum or security system
• Upgraded wiring, plumbing, ductwork
• Central heating, AC, humidifier
• New furnace, water heater
• Filtration, soft-water, or septic system
• Built-in appliances
• New flooring or wall-to-wall carpeting
• Upgraded insulation
• Satellite dish

You will add the cost of capital improvements to the basis of your property.