I have a large capital improvement to a multi-unit apartment building. Costs were incurred in 2022 (engineering, permits, etc.), but the project won’t be completed until 2023. I plan to depreciated this asset once the project is complete and it can be placed in service. How do I handle the 2022 costs depreciation-wise as they are part of the entire project, but incurred in the year prior to the asset being put into service?
Thanks,
Andrew
