Entering info for cost of furnace in rental property: Expense/Depreciation

Forum|Forum|5 years ago
March 2, 2021
2 replies
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Confused by prompt screens: I have a single family rental and replaced the furnace at a cost of $3000. Here's where I'm at.

- Do you have any items for this rental prop that aren't covered by your elections

• Yes

Property Assets

• Add asset

-Describe this asset

• Rental Real Estate Property

-Tell us a little more about your rental asset

-How would you categorize this asset?

* This is where I'm a little confused and assume I enter "Residential Rental Real Estate" rather than appliances, carpet furniture or Landscaping. Where do I go from here? Am I on the right track.

** I also have a sidewalk ($1600) to write off. I assume I follow these same steps to this point and then choose landscaping?

Thanks for helping this tired old mind.

TurboTax Home & Biz Windows

Best answer by Anonymous_

You select "Residential Rental Real Estate" and then enter the details on the following screen for the HVAC.

Select land improvements for the sidewalk, however.

Carl11_2

Employee

Because the new furnace becomes "a physical part of" the structure, it is classified a residential rental real estate and depreciated over 27.5 years. It's no different than if you replaced the windows, or put new shingles on the roof.

BP607Author

Thanks. I get that part but it really doesn't answer my question about prompting within turbo tax.

Carl11_2

Employee

Did you miss what I posted earlier maybe?

it is classified a residential rental real estate

What further clarification if any, do you need?

Anonymous_Answer

Employee

You select "Residential Rental Real Estate" and then enter the details on the following screen for the HVAC.

Select land improvements for the sidewalk, however.

BP607Author

Thanks. I did figure it out. You confirmed. Every year they seem to change prompts, wording and such sometimes leaving out what might have been there last year and it makes things a little confusing. For example, when you got to that screen to add the furnace as an asset, it asks for the asset but gives you an address and an example entry. It's like there is too much programmer input and not enough end user input when they update these form year to year. Or, maybe it's me and the way I read or interpret things. Thanks again.

MG26

I know this is an old post but I have the exact same issue. It says to put in the description of asset (furnace) and gives an address as an example so it makes me think that I'm depreciating an actual real estate property. Some verbiage such as HVAC, Furnace, Air conditioner is never included in the category selection so not intuitive at all. I'll bet a lot of people put it under appliances with 5-7 year depreciatation period by mistake.