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nholdway1
New Member

Rental property depreciation: What asset category for a total electrical rewiring?

If I did a total electrical rewiring, including new fuse panel and some light fixtures, on my rental property, I understand that's an improvement that I must depreciate. But is the asset category for depreciation "Residential real estate"? Not "Appliances, carpet or furniture"? There's such a difference in depreciation time between the two.

Why is TurboTax not more helpful in determining this even through its GuideMe feature in the higher-cost version of TurboTax addressing rental properties?

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Accepted Solutions
AnnetteB
Intuit Alumni

Rental property depreciation: What asset category for a total electrical rewiring?

Because the electrical wiring and panel are components of the rental property itself, the proper depreciation category to use is Residential Real Estate

I agree that there needs to be additional information provided within TurboTax to help users determine the correct category to use.  Until that time comes, there is a useful table in the IRS Publication 527 Rental Real Estate that you can use for reference.  It is located on page 9 of the document, Table 2-1.


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1 Reply
AnnetteB
Intuit Alumni

Rental property depreciation: What asset category for a total electrical rewiring?

Because the electrical wiring and panel are components of the rental property itself, the proper depreciation category to use is Residential Real Estate

I agree that there needs to be additional information provided within TurboTax to help users determine the correct category to use.  Until that time comes, there is a useful table in the IRS Publication 527 Rental Real Estate that you can use for reference.  It is located on page 9 of the document, Table 2-1.


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