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posted Jun 3, 2019 1:10:40 PM

I converted my home to rental in 2018, bought in 2010. I have made capital improvements before conversion. Where do I input those to add to costbasis for depreciation?

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1 Best answer
Intuit Alumni
Jun 3, 2019 1:10:42 PM

You will add the cost of the capital improvements to your original cost basis for your property.

When computing what value to use for depreciation when converting your home to a rental property you will use the lower of the fair market value or your adjusted cost basis which will include your original basis plus your capital improvements.

1 Replies
Intuit Alumni
Jun 3, 2019 1:10:42 PM

You will add the cost of the capital improvements to your original cost basis for your property.

When computing what value to use for depreciation when converting your home to a rental property you will use the lower of the fair market value or your adjusted cost basis which will include your original basis plus your capital improvements.