Major Renovations to a rental property

Forum|Forum|3 years ago
April 17, 2023
1 reply
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Where do I enter major renovations to a rental property? I have never occupied this property. It was occupied at the time of purchase and then renovated after tenants moved out.

Not A Product Question

PatriciaV

Employee

Capital improvements that add to the value of your rental property are normally depreciated. You can see a list of typical improvements here: How do I handle capital improvements and depreciation for my rental?

However, you may be able to write off these costs if you qualify for the Safe Harbor Election for Small Taxpayers. TurboTax will ask you about this election under the Assets/Depreciation section of your Rental Property. If you choose this election, you can expense up to $10,000 in costs that would otherwise be depreciated.

Otherwise, enter the total cost of the renovations as a separate rental asset under Assets/Depreciation for your Rental Property in TurboTax.

This assumes that the property was returned to service as a rental after the renovations were complete.

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