@CandP507 wrote:
- Purchase Date (This be the date paying off the ADU construction, correct? Or would this be the date that we originally purchased the parcel that at the time only had our primary residence on it?)
- Available Date (This would be the date that we listed it on Craigslist as being available for rent, correct?)
- Original Purchase Price (This would be the price of the ADU construction, correct?)
Here is the part that throws off my total amount to be depreciated over 27.5 years. Under the improvements section, it asks for home improvements such as (replacing the roof, painting, refurnishing, etc) and room additions (building additional bedrooms or bathrooms). I originally inputted values here based on the ADU original construction cost thinking that building a roof was the same as replacing a roof, but now I’m thinking I should leave these values as zero since it is not an improvement occurring after the completion of the ADU construction?
I would enter the date the ADU was finished (livable).
Yes.
Yes.
If you already entered the full cost of the ADU, you are correct that "improvements" are only things that happen AFTER it was "placed in service". However, if you are depreciating other things (carpet or appliances), you can depreciate them separately (over 5 years, rather than 27.5 years).
