Is a renovated kitchen in the unrented portion of a partially rented home a depreciable rental asset?

Forum|Forum|1 year ago
March 20, 2025
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Hello. I rent part of my home with a private entrance. Last year, we remodeled the kitchen (e.g., removed a wall, new cabinets, counters, appliances, electrical, plumbing) in the primary portion of the home, which is separate from/not accessible to the rented portion. Do/should I add the kitchen remodel as a depreciable asset associated with this home's rental unit? I haven't added the new kitchen to the rental at this time, as it appears unrelated to the rental itself, though it impacts the overall value of the home. Thank you in advance.

TurboTax Deluxe Online

KrisD15

No, that would not be an additional rental asset.

I do suggest you keep receipts for the kitchen remodel as that cost might be relevant when you sell since it would increase your basis in the entire home. This increase may or may not affect your capital gain (depending if you qualify for the capital gain exclusion on a primary residence)

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