Hi Carl,
Thank you very much for the detailed answer. I am in a similar boat but with some differences.
My property has 2 houses on it, I subdivided the property into 3 lots, 2 with houses and 1 vacant lot. this will be done in 2022.
I can follow your advice to convert old property to personal use, then create 2 new rental properties. I plan to allocate part of the original cost basic as the cost for the vacant lot, I will also roll all my subdivision cost into the vacant lot. For the vacant lot, I don't need report anything in TT.
I plan to convert the old property to personal on 12/31/2022, and "acquire" the 2 rentals on 1/1/2023.
I also remodeled one of the house in 2022, I plan to add that as remodel cost as basis for that property in TT.
Do you see everything I plan to do is correct?
Anywhere I maybe should pay attention to or change the way I do it?
Should I add the remodel cost to the old property, depreciate it, and then do the conversion?
Thanks!!!!
