How do you allocated the costs of a rental property kitchen remodel that spans two years.

[whoppmeyer]

We started a rental kitchen remodel and paid half the costs in 2018 and completed it in 2019. Do i input the costs for 2018 in 2018 and the same for 2019 or hold it all for 2019?

[MichaelL1]

To take deprciaiton on any item it has to be placed in service, or available to be placed in service (If you can't find a renter).

So if are half finished with a project and not renting the space, you have to keep the costs and then list it as an asset when finished which sounds like 2019.

Now if you did part of it and it was rented out after that, then you would list it as an asset in 2018, and then another asset in 2019 when it was completed.  So it would be 2 different assets totaling 100% of the project.