Answered: Can we start depreciation on the date rental property purchases

hgtc · ‎03-03-2022

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.

sjrcpa · ‎03-03-2022

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.

View solution in original post

TaxGuyBill · ‎03-03-2022

It starts when it was held out for rent and ready-and-available to be rented.

sjrcpa · ‎03-03-2022

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.

Can we start depreciation on the date rental property purchases

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