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February 22, 2020
Question

Capital Improvements

  • February 22, 2020
  • 1 reply
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I have added $9800 in capital improvements  to my rental property (replaced carpeting with floor tile through entire home). I did this in the section in Turbo tax by clicking on Edit in the assets/depreciation  section for Rental Properties and then add an asset. When I finished it states "This asset qualifies as a 1 time special depreciation deduction and asks "Do I wish to do this?" It does not seem to matter if I answer yes or no. Nothing changes. On the next page the asset shows but does not show any depreciation whether I answer  yes or no to the question. Also, nothing changes no matter if I increase the cost of the asset, like even by an additional  $50,000.  So, how do I get to enter this capital improvement to my rental property? 

1 reply

February 23, 2020

That's because you're supposed to add it as an expense. Add the carpet as 5 year property instead.