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Investors & landlords
Yes, you are correct. Keep in mind that once you converted it to a rental it was 100% rental use. TurboTax knows how to do the depreciation based on the date placed in service (converted to a rental). Do not alter the cost basis (see below).
For the property asset you will select residential rental and use the full cost of the property, including capital improvements such as a complete remodel of a room or rooms as example, or the fair market value (FMV) on the date of conversion, whichever is less. You can use the city or county tax assessment to determine the portion that should be land.
As far as repairs, cleaning, etc., after it was converted, all expenses to maintain the property are deductible after the date placed in service, as long as it was available for rent. As you indicated, you must prorate the real estate taxes and the mortgage interest and insurance.
Also, the rent must be at least fair rental value or losses will not be allowed.
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