Question

How to enter repipe on rental property

Forum|Forum|1 year ago
February 18, 2025
1 reply
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We had a leak and had to do a repipe on our rental property which was around 18K after repipe and asbestos remediation, etc. Since over 2500, I must take it as an asset depreciation over time. When I try to set it up, the options for this 'asset' are:

1. residential rental real estate

2. Appliance, carpet, furntiture

3. Land improvements

None of those quite makes sense to me. Thinking number one, but I used that to put the rental property as an 'asset' two years ago. Recommendations on what to do please?

Thanks,

Adam

M

MindyB

The best choice for this is option #1. It will be an asset in addition to the actual rental property. This would be considered a "major improvement" and thus will be depreciated in the same way as the rental, over 27.5 years.

Here's some information you may find helpful: Capital Improvements

P

psyadamAuthor

Thank you. Under that option it asks for 'land value'. I filled out the true land value when I placed the home as an asset. I'm assuming this time I simply leave that as zero, as the pipes have no 'land value' per se. Can you please confirm?

Thanks,

Adam