Enter a new asset for depreciation

Forum|Forum|1 year ago
March 22, 2025
1 reply
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I want to enter a replumb of water sewer and drain lines that was 10,000. I think this should be over 27 as a capital improvement, but it categorized it as HY 5 years. What should I choose as asset category that would be correct?

MindyB

Yes, I agree a replumb is 27.5 year property, not 5 years. You can categorize it as "Residential Rental Real Estate."

Here are the full instructions for how to report this in TurboTax Online:

Navigate to Federal > Wages & Income > Rental Properties and Royalties (Sch E)
Edit the rental using the pencil icon
Navigate to Assets, choose Improvements, furnishings, and other assets, choose pencil icon to edit and skip to #6; or, if Improvements, furnishings, and other assets is not an option, select Add expense or asset
Choose Improvements, furnishings, and other assets and continue
Improvements, furnishings, and other assets will appear in your list of assets, choose to start
Continue through the interview and answer yes to Did you make any improvements in 2024?
Continue until you see Your Property Assets and "Add an Asset"
You can describe the asset as Rental Real Estate Property. Categorize it as Residential Rental Real Estate, and answer the remaining questions.