@chunhuach everything looks good. But I want to clarify a few things since you didn't mention them, or clarify them enough for me to be sure I understand.
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,
What I see as the important thing here, is that when you add up the cost basis of the land for all three lots, the total will be exactly the same as the cost basis of the land before subdividing.
I will also roll all my subdivision cost into the vacant lot. For the vacant lot, I don't need report anything in TT.
While I personally don't see a problem with that, I do question if doing it that way will be acceptable to the IRS, and I question if the IRS will even look at it. I just don't know. I would expect not, as you may have to spread it among all three lots. I just don't know the definitive acceptable process on that or if your subdividing costs are even deductible or can be added to the cost basis. With the IRS hiring another 87,000 agents, they're not doing that to go after the rich people. So I would suggest you either do further research in the IRS pubs, and/or seek the advice of a tax professional that you can hold legally liable and financially culpable for the information they provide you.
plan to convert the old property to personal on 12/31/2022, and "acquire" the 2 rentals on 1/1/2023.
Just remember, you have to manually keep track of the depreciation taken prior to this, outside of TurboTax. You will be required to recapture it and pay tax on it when you sell the property in the future.
I also remodeled one of the house in 2022, I plan to add that as remodel cost as basis for that property in TT.
If the remodeled structure was "in service" in 2022 after the remodel, you'll have some depreciation for 2022. You can just reduct the cost basis of that remodel by the depreciation taken, and then "roll it" into the structure cost for that property. That way, you start 2023 with a single asset listed for that property, which will be the property itself, only.
