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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
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Experience:  10 years experience
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Team:I replaced a sewer line in the yard of my rental property

Customer Question

I replaced a sewer line in the yard of my rental property for $6,000. On my tax form should I list it as an improvement under the title land improvement under landscaping?
Submitted: 5 months ago.
Category: Tax
Expert:  emc011075 replied 5 months ago.
Hi. My name is ***** ***** I will be happy to help you. It is improvement to the property, not the land. You can call it what it is, sewer replacement. It will be depreciated over 27.5 years.
Customer: replied 5 months ago.

Thanks...I am using Turbo Tax should I list the property address and in ( ) say replaced sewer?

Customer: replied 5 months ago.

Should I list the address and just the cost where it states land cost

Expert:  emc011075 replied 5 months ago.
No. The land is nondepreciable and it will reduce your depreciation. If you cannot enter the depreciation manually than depreciate it the same way as you did the house, but try to change the description if you can. You need to make it clear what is being depreciated today or 5 years down later, for you or whoever is using the depreciation schedule. Do not put anything in the cost of the land of if you must, put 0.