Can I deduct the hot tub and deck (for the hot tub) from my tax deductions in 2024 for the rental property?
No. You take the cost of the hot tub and deck and add the total to your basis in the property and then take depreciation deductions based on that total over 27.5 years.
Example: Hot tub plus deck = $10,000 plus basis for depreciation of the property = amount you depreciate over 27.5 years and NOTE that your basis for depreciation will be the lesser of your adjusted cost basis OR the FMV on the date you converted the property to rental use.
