I bought home in June 2017. I rented 100% of home for rest of 2017 and 2 months in 2018. Taxes done both years by CPA and depreciation was taken for those tax years. I moved in 2018, and did not take further depreciation after 2018 since no rental. .. until now.
In 2023 i converted 25% of my home (3 of 12 rooms) to AirBnB. I spent significant money to prepare (patio, doors, ductless A/C, etc). I started renting in June 2023. In addition to shared (prorated) expenses for the rental period (utilities, insurance, cleaning supplies, etc) i also have 100% expenses solely for the BnB (sheets, lamps, small appliances, coffee, etc).
In Property Profile in Rental & Royalty section, i answered questions based on above (did not click "first year rented" due to 2017/2018 activity), did click that I rent "part of home", clicked that i started renting in 2023. I entered days of business as 113 (total 2023 days rented and 0 days as personal), and also clicked that property was not rented all year. (Note that i was not asked when the rental started which seems odd).
Now for the fun. I first let TT do the math on expense allocations, but it assigns the 25% (BnB percent of home) to everything (not surprising since not asked a start date). Also, some yearly fees need to be further split beyond straight 25% because the BnB was rented for only 58% of year (insurance, property tax, etc). Further, i need a place to claim 100% expenses (items solely for BnB).
The depreciation seemed to go OK ... i valued the home at 25% of the original structure value after the 2017/2018 depreciation was taken. I was asked / entered the start date (June 2023). Depreciation on the other improvements also seemed straightforward, although I did not claim Safe Harbor or Special Depreciation
Any suggestions on how to assign / capture correct expenses for the rental period ... 25% for things like utilities, 25% x 58% for yearly fees (property taxes, insurance), and 100% for solely BnB expenses?
In the meantime i am thinking to not let TT split the expenses and to select that i'll do the math and enter net expenses on my own. Shouldn't have to do this though.