Additional note, you do not "depreciate" assets put in place when owner occupied. You add them to the basis of the property when it is sold. Properties are often owner occupied for years before becoming a rental and reported on Sch E Rents and Royalties. BTW, I try to enter the total amount of additional improvements as an added deduction but Turbo tax threw it into "carry forward" because I reached the limit for the year. Turbo tax is poorly programmed to deal with this scenario. I was able to manually figure what I owned and paid the taxes and filed for an extension because no one in support could properly help me so they just found a way to pass it onto to someone else or in one case was very nasty to me that they had other calls. I have used Turbo Tax for years and sadden by this years events.
