I purchased a Residential rental in 2019, but it was in such poor condition I was not able to rent it during that year. It had a few expenses and I depreciated the building accordingly as a residential rental with no rent on 2019 Taxes.
I then decided to renovate the building into a commercial space. At the end of 2020 the renovation had not been completed.
Do I total up 2020 expenses as a capital improvement and add as an asset for depreciation?
Does the whole building need to be moved to commercial before new appreciation is added?
What date would be used for 'date acquired' on online form for renovation?
Do you need to wait till renovation is complete to depreciate it?
Thank you.
