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Investors & landlords
First, you can't take any expense for a rental, including depreciation, until it is placed in service and available to rent. You need to amend 2019 and remove it.
Since it was not really ever a rental property, you do not have to convert. Once the nonresidential rental is placed in service, you can begin to take expenses. Your basis will be cost plus improvements.
May 9, 2021
2:57 PM