ToddL99
Expert Alumni

Investors & landlords

Since these items were purchased for personal use and before you converted the property into a rental, you won't be able to depreciate (or expense) their cost as part of your rental property.

 

The depreciable basis for the property would then be the lesser of either its adjusted basis or its fair market value at the time the property was placed in service for rental purposes. Whichever value applies would be depreciated over 27.5 years.

 

The adjusted basis would be the purchase price of the house plus any improvements you made; the appliances, the water heater and the blinds would qualify as improvements,