Investors & landlords

 

When you changed the house you held for personal use to rental use, the basis for depreciation was the lesser of fair market value or adjusted basis on the date you converted it to a rental. You start depreciation using that valuation on 8/01/2016 which is a partial year and move forward to 2017 and 2018 which are years in which you take the full depreciation deduction. The Turbotax software will calculate the depreciation for you.