How to recover the remaining depreciation of a replaced roof not fully depreciated

Forum|Forum|6 years ago
June 5, 2019
2 replies
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Installed new roof on rental property on 07/1996 and started to depreciate it using 27.5 year straight line method as dictated by IRS. That roof failed and had to install a new roof on 06/2016. Will depreciated new roof using same method. But how do I recover the depreciation from the roof that was replaced (07/1996) and not fully depreciated?

TurboTax Premier Online

PatriciaV

Employee

Since the old roof is no longer part of your Rental Property, report that you stopped using the asset (see screenshot below - click to enlarge). Report a sale price of zero. This will generate a loss on the disposal of your asset. Since you held it for more than one year, this will be a capital loss.

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thompsam

I have a similar situation and have followed the advice above in TT. In your answer above it states: "This will generate a loss on the disposal of your asset.” I can’t see where in TT this loss shows up, nor do I see it on my draft 1040 form as line 13 (capital loss) remains blank? Where in TT does TT generate the capital loss for this “disposed of” asset?

jkenned9260

How do I recover the balance of depreciation on my old roof when I replace it, the remaining 15 years

Opus 17

Employee

@jkenned9260 wrote:

How do I recover the balance of depreciation on my old roof when I replace it, the remaining 15 years

If the roof was part of the property when you bought it, you don't get anything when it fails. You just list the new roof as an asset and start depreciating it.

If the existing roof is already a replacement and already listed as a separate asset in Turbotax, you will report that you disposed of the asset (it wore out, had zero value). That will allow you to roll up the remaining depreciation. Then list the new roof as a new asset.