hgtc
Level 5
03-03-2022
05:44 PM
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Taxpayer purchased rental property late Oct 2021. They did some improvement and had cleaning/utilities expenses. They found tenant and start renting on 1/15/2022.
For 2021, can we report $0 rent, depreciation, and rental expenses on Sch E?
Or, no Sch E in 2021?
Thanks.
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TaxGuyBill
Level 15
03-03-2022
07:15 PM
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It starts when it was held out for rent and ready-and-available to be rented.
sjrcpa
Level 15
03-03-2022
07:15 PM
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When was it ready and available for rent (placed in service)? That's when depreciation starts.
Improvements get capitalized. Then depreciated.
The more I know the more I don’t know.
