Hi all,
We have a rental apartment in our home that was first "placed in service" in mid-2020. Using TurboTax, we have calculated and deducted depreciation on that property for 2020 and 2021. In 2022, however, the apartment was only rented for 4 months through April. After that, we did a significant renovation and did not rent it again until this month (Feb 2023). When do we need to put the 2022 renovation costs "in service"? 2022 or 2023?
The unit was not in a rentable condition for the remainder of 2022, but does it stay "in service" anyway, so that 2022 improvement costs get added to the cost basis for 2022? It would be cleaner and easier to lump it all into 2023.
Hope this makes sense. Thanks for your input.
Dave
