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CSorensen
Returning Member

I skipped a year on a rental asset and put it back in rental service after doing renovations. How do I restart the prior depreciable assets?

For those prior depreciable assets (before taking it out of rental service), I can set the correct accumulated/prior depreciation.  But I can't reduce the Year of depreciation by 1 to reflect the rental asset was not in rental service the year it was being renovated.
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3 Replies

I skipped a year on a rental asset and put it back in rental service after doing renovations. How do I restart the prior depreciable assets?

If you hold property for rental purposes, you may be able to deduct your ordinary and necessary expenses (including depreciation) for managing, conserving, or maintaining the property while the property is vacant. However, you can’t deduct any loss of rental income for the period the property is vacant.

 

See https://www.irs.gov/publications/p527#en_US_2018_publink1000218999

CSorensen
Returning Member

I skipped a year on a rental asset and put it back in rental service after doing renovations. How do I restart the prior depreciable assets?

Thanks, but question is House was depreciating on 27.5 year SL/MM.  So now when I put the House back in rental service, Turbotax assumes that House was continually depreciated during the time it was out of rental service.  It didn't skip the year it was out of rental service.  I've adjusted the accumulated/prior depreciation to show the correct amount for beginning of tax year it was in rental service, but TT won't allow to show current Year of depreciation to be 8, instead of 9.  So it calculates the current year as catching up on lost depreciation, when there was no lost depreciation.

RobertG
Expert Alumni

I skipped a year on a rental asset and put it back in rental service after doing renovations. How do I restart the prior depreciable assets?

I don't think that there is any way to skip a year of depreciation.  

 

As tagteam pointed out, you can claim depreciation on a property out of rental service for renovations.  Depreciation is allowed or allowable, you can't opt out of claiming it.  

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