请教前辈们:how to file improvement on rental properties?

来源: 2012-02-17 09:22:00 [旧帖] [给我悄悄话] 本文已被阅读:

We spend about $100,000 to repair a bank owned property last year (new kitchen, new bathrooms, new HVAC, new landscape etc).I am thinking most of them should be considered as capital improvement?

I am trying to figure out where to file the improvement expense. I thought that I could put them under repair on Schedule E. Then I read the following in schedule E instruction:

Line 4

Since line 3a is zero, enter on line 4 the amount from line 3b.

General Instructions for Lines 5 Through 21

Enter your rental and royalty expenses for each property in the appropriate column. You can deduct all ordinary and necessary expenses, such as taxes, interest, repairs, insurance, management fees, agents' commissions, and depreciation.

Do not deduct the value of your own labor or amounts paid for capital investments or capital improvements.

I briefly looked at schedule E and there doesn't seem to have anywhere else that I could fill in improvement. So, how do I file the expense I spend on improvement?

Thanks a lot!