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New Member
posted May 31, 2019 5:37:38 PM

How do I start Depreciation on a New Rental Property? Should I wait until Next year?

I have a rental property that I placed in service in 2015 (September) but it was not rented before the end of the year. I am currently doing some renovations that will raise the value.  Can I just claim the repairs and maintenance expenses this year and start depreciation next year on the home and the new appliances once installed?  Turbo Tax asks me for the Fair Market Value of the Property. This will increase after I finish the improvements and have it appraised. 

Should I enter what the value is from the Tax assessment now and change it in turbo tax next year or just enter the expenses this year and start depreciating the house and new appliances next year when done?

I do not need the depreciation deduction this year.

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1 Replies
New Member
May 31, 2019 5:37:39 PM

You place property in service in a rental activity when it is ready and available for a specific use in that activity.[ready to rent]

Any repairs or work done on a building before it is placed in service as a rental property is capitalized.; they are not a current deduction.

LOL sometimes on second look the property needs just a little more work.