There is no depreciation on a property that is bought and sold the same year. Also, there is no depreciation on an investment property (the flip) if it was never rented. All costs of upgrade, capital improvements, etc, will be added to the original purchase price to determine gain or loss.
Yes, there is depreciation for the portion of the year a rental is in use before the date of sale in any year. Depreciation on a rental uses a straight line method for each month in service and a half a month for the year it is removed from service (sold). TurboTax will do this calculation when you select "sold" as one of the situations and then t will also walk you through the sale.
