asset placed into service

We have owned a manufactured home that has been a rental. We moved it from a rented space in a park to land that we purchased. After set-up and prep, it will be rented again (from the management perspective it as remained a rental, just unrented during the move). How do I handle the land and other costs related to the move which are assets to be depreciated? Specifically, the move was in Dec. 2021 and it will not be available to rent until 4/1/2022. Most of the expensed were incurred in 2021.

508

Level 15

Mar 15, 2022 10:24:45 PM

the land is not depreciable but it does add to your basis. as to other costs you'll need to be specific because some could fall into any of these 3 categories

1) personal not deductible or depreciable nor do they add to basis

2) depreciable

3) not depreciable

since is out of service depreciation stops in December and won't start again until you make it available for rental.

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asset placed into service