You can deduct as rental expenses only the part of the expense that is for the part of the year the property was used or held for rental purposes.(Schedule E)
You cannot deduct depreciation or insurance for the part of the year the property was held for personal use. However, you can include the home mortgage interest and real estate tax expenses for the part of the year the property was held for personal use as an itemized deduction on Schedule A (Form 1040)
For depreciation purposes, treat the property as being placed in service (ready to rent) on the conversion date(Schedule E)
Do the calculation and enter the correct amount to each .
