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Do I put an addition of a bathroom and closet for my rental space in my basement in the property assets section of Turbo Tax?

And then do I select "Rental Real Estate Property" and then categorize it as "appliances, carpet, furniture" to indicate the cost of the addition?

Best answer by DianeW777

Keep all receipts and documentation with your tax records for future audit purposes.

In TurboTax you can choose one of two options for your tax return if you qualify.

List the capital improvement as an asset and depreciate over the property life of 27.5 years. Choose Asset and add a new asset under Rental Real Estate Property as you noted.
De Minimis Safe Harbor Election - Claim expense in one year vs depreciation using the smaller of:

More information is here for your convenience.

Keep all receipts and documentation with your tax records for future audit purposes.

In TurboTax you can choose one of two options for your tax return if you qualify.

List the capital improvement as an asset and depreciate over the property life of 27.5 years. Choose Asset and add a new asset under Rental Real Estate Property as you noted.
De Minimis Safe Harbor Election - Claim expense in one year vs depreciation using the smaller of: