For depreciation, which % should I use for the time used in business in 2018. Is it when you began renting (100%) or the entire year (~42%)?

[ughtaxes]

I changed the property from personal to rental in August 2018.

[Coleen3 · Accepted solution]

Once you convert your personal property to rental use, it changes its use. You would start depreciation from the moment it is placed in service and is available for rental. As long as there is no personal use during the time it is a rental, you would depreciate the entire amount. If you were to convert back to personal, then depreciation stops.

Placed in Service

You place property in service in a rental activity when it is ready and available for a specific use in that activity. Even if you aren’t using the property, it is in service when it is ready and available for its specific use.

Example.

On April 6, you purchased a house to use as residential rental property. You made extensive repairs to the house and had it ready for rent on July 5. You began to advertise the house for rent in July and actually rented it beginning September 1. The house is considered placed in service in July when it was ready and available for rent. You can begin to depreciate the house in July.