Expense that span multiple rental properties?

Forum|Forum|3 years ago
April 12, 2023
1 reply
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How to I properly enter expenses for tools and building materials used for repairing multiple rental units that I own and manage in Turbo Tax Premier? For example something like a new lawnmower or saw?

I also purchased a storage shed which is located at my primary residence that I use to store these tools and materials. It cost more then $2500. How is this properly deducted>?

ThomasM125

You need to divide the cost of the equipment, tools and storage shed up between the rental units. You can divide the cost by the number of units or allocate a larger percentage to some of the units if the tools or shed are used more by them.

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kylekmnAuthor

Thank you, so in this case I'd divide the total dollar amount between the number of units and include that amount under miscellaneous expenses for each rental property?

Just to confirm, this is still the case for tools or the storage shed that have a useful life of more then one year allowing me to get the entire deduction the first year as opposed to depreciating? Can you please confirm?

PatriciaV

Employee

Yes, allocate the repair costs among the properties using any reasonable method. Be sure to keep a record of how you calculated the expenses you report for each property.

If you allocate the shed in the same way, the individual cost for each property should fall under the De Minimis Safe Harbor amount of $2500. This would allow you to expense the cost rather than carry it as an asset for depreciation. This election appears at the beginning of the Assets/Depreciation section for a Rental Property.

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