Question

Expenses from rental of single family residence

Forum|Forum|6 years ago
March 22, 2020
1 reply
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We own a single condo unit that we have rented to a tenant for multiple years. During 2019, we made two improvements to the unit (new wall-to-wall carpeting and vinyl tile flooring). While entering the revenue and expenses for the unit, TurboTax (TT) said that we could expense the costs of the two improvements ( $2,310 and $3,883) in 2019 instead of depreciating their costs over the next several years. We elected the expense option, but TT failed to transfer the improvement costs to the list of expenses. What is the problem?

D

DianeC958

If you put this information in TurboTax as an asset then it takes the amounts and includes them in the depreciation for the year. If you had a loss from the rental it will not give you the full deduction for these amounts.

If you look Depreciation and Amortization Report, the asset will be reported there with the full amount taken as a 179 Depreciation Deduction.

The other option is to enter these items as expenses instead of as an asset. Then you will receive the full deduction for the items.

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