Carl
Level 15

Investors & landlords

Since none of your property improvements were actually placed "in service" after they were completed, you do not need to bother depreciating them. That means you can just list the total cost of all of your property improvements combined, as a single asset entry.  But in doing this there is data that the program will "INSIST" you enter. SO here's how you do it so that minimal depreciation (if any at all) is taken.

The "in service" date (or acquisition date if asked for that instead) will be the date you close on the sale.

The business use percentage will be ZERO percent. If it won't take ZERO (it probably won't) enter 1%

It flat out does not matter that you may have actually paid for the improvements in 2019. It will still add to your cost basis of the property no matter what year tax return you enter it on. But since you did not sell the property in 2019 or even try to rent it again in 2019, there's no sense in adding the improvements to the 2019 tax return. All it will do is "FORCE" you to take depreciation that you are both not entitled to, and don't want to take anyway.

Remember, when you sell the property all prior depreciation is required to be recaptured and taxed in the year you sell. That recaptured depreciation adds to your AGI and has the potential to bump you into the next higher tax bracket. You want to avoid that at all costs, and you want to do it legally too, of course.