How to add prior year renovation cost to a rental property just switched from primary residence this year?

Forum|Forum|3 years ago
October 2, 2022
1 reply
13 views

To catch up the depreciation on the cost incurred from previous years while it was the primary residence.

TurboTax Online

Carl

Level 11

The property is only depreciated while it is classified as a rental. You DO NOT depreciate property that is personal use - weather it's your primary residence or not.

How you deal with the property improvements depends on the history of the property. The vagueness of your post raises the likelihood that maybe it was a rental before, then you converted it to personal use, and now you're coverting it back to a rental. Is this the case? If not, then what is the history here? The details matter.

JuneindcAuthor

Level 2

Thanks for your input. This property was primary residence since purchased a year ago then converted to rental in 2021. Can I catch up the depreciation from the cost incurred in 2020? Thanks.

Critter-3

Level 15

When you convert from a personal residence to a rental then the total cost basis of the property is entered as ONE single asset for depreciation purposes.

Purchase price + cost to buy + improvements (from the time you bought the home to the time it is rented) = total cost basis for depreciation purposes.