Dear experts,
I have rental properties in Canada for years and I became US tax resident in 2020. When using TurboTax to prepare 2020 tax return, it asked for "Date placed in service". If I fill in the "real" date (a few years back), the "Prior depreciation" shows a number which I never have. Questions,
1. Date acquired, should I put down the date I acquired the property? Or the date I become US tax resident? As all these properties have been treated as "deemed disposition" when I departure Canada.
2. Date placed in service, should I put down 01/01/2020? Or the date I started to rent it out? If I put down the date it started to be rent it out, as I said early, the 'Prior depreciation" has a value which I think is incorrect as I never use it to deduct rental income.
3. Enter the total cost when asset was acquired, same as question #1, should I use the purchase price plus closing cost plus improvement cost? Or fair market value when I become tax resident in US?
4. "Life" shows on Form 4562, should it be 27.5 years? Related to question #2, depends on which date to be used as "Date placed in service".
5. I installed an AC in 2018 and fence in 2019, if "Date placed in service" use real date, these cost can not be added to cost basis as improvement, then how to report these cost in 2020 tax return?
Appreciate your help!
