DanaB27
Expert Alumni

Investors & landlords

Yes, the depreciation would start when you placed the rental home in service (started to offer it for rent).

 

 The starting point for basis for depreciation is the lower of (1) the adjusted basis on the date of conversion, or (2) the property’s fair market value (FMV) at the time of conversion. 

 

Please see Publication 527 (2020), Residential Rental Property Cost Basis for additional information.

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